Apple is reportedly planning to wind down its hardware subscription service. According to the recent reports, the company will shut down the project which was first declared back in 2022. The announcement which was believed to change consumer behavior of people has been delayed multiple times due to various reasons.
Now, after 2 years, the company has decided to cancel the project completely. Although there has not been an official declaration from iPhone’s side, reports suggest that the company has reassigned the team members of this project to other projects. Anyhow, this decision is regarded as a major setback for the company.
Two Years of Efforts in Vain: Apple to Shut Down the iPhone Hardware Subscription Policy
After two years of failed attempts, Apple is winding down its iPhone hardware subscription policy. The project which was announced in 2022, months before its launch, has been postponed due to software bugs and regulatory issues. Although the project was then delayed for 2023, it got postponed even further, finally reaching the cancellation.
The major purpose of this program was to make buying iPhones a little easier. According to this policy, people can buy iPhones as they purchase an app or a program. Instead of buying a new iPhone model by paying money at once, this policy helped users subscribe to a phone by paying a monthly fee for the latest version. Once the new version is launched, the users can own them. Although this plan aimed to provide the latest iPhone version for the users, the company has decided to halt this decision forever.
Reports suggest that the company dismantled the whole team behind the project, placing them in other projects. Although Apple officials have not been ready to respond to the matter, the restarting of all other projects confirms that the hardware subscription policy has been abandoned.
From the very beginning, the iPhone hardware subscription policy has received major setbacks. Months before the launch in 2022, the project was hit by some software bugs. Regulatory issues have also been a major concern of the project. Reports also suggest that various top companies sent the project back.
Apple mainly aimed to lock users and gain a greater amount of recurring revenue through this project. As the plan was more like subscribing to an application by billing every month, the users need not pay huge amounts to own the latest iPhone released yearly. So, Apple thought that it could keep the customers inside the Apple world and improve moneymaking. However, all these have been in vain as Apple scraps the project completely.
With the cancellation of the hardware subscription policy, 2024 seems to be an unlucky year for Apple. It was in June that Apple announced its decision to shut down the buy now pay later program. Furthermore, it declared that Pay Later would no longer provide new loans through the scheme. It was only a year since Apple launched its Pay Later installment scheme in the US, which allowed users to repay up to $1000 in shopping expenses.
However, the decision to wind down all these programs was largely influenced by the Consumer Financial Protection Bureau getting stricter with its rules. The organization was informed earlier this year that the pay-later scheme policies should follow the same rules and regulations introduced for credit card companies. As these regulations were hectic and Apple did not wish to be part of them, the company gave up on its pay-later policies and now the subscription program.
However, before canceling the buy now, pay later policy, Apple teamed up with some third-party organizations including Affirm Holdings and Klarna Bank to continue its pay-later scheme without being directly involved in them. These moves denoted Apple’s intention to include third-party services in the new iOS 18 software.
Also Read: iOS 18 Features: Hidden Tips And Tricks You Shouldn’t Miss
Apple Pay Later and its closure
Apple Pay Later was a relatively new feature introduced by the company. With this service, Apple allowed users to split their expenses into multiple installments. Users could split their shopping expenses into installments of over six months with no interest in this program. Furthermore, this scheme was available for all online and in-app purchases through iPhones and iPads at stores that accepted Apple Pay.
However, Apple discontinued this service within almost a year, by this year June. In an official statement, the company noted that it is shutting down its Buy Now, Pay Later service, declaring that the decision would come into action immediately. As mentioned, the scheme was canceled the same day. However, those who have already been paying back the loans could manage and pay them through the Wallet app.
Apple stated that the sudden decision was made as it was planning to launch new features in collaboration with third-party credit and debit card providers. However, reports noted that the major reason was the renewal of laws by the Consumer Financial Protection Bureau. So, with more setbacks, experts comment that Apple may keep aloof from the financial business.
