Apple could be open to the idea of offering a hardware and software subscription bundle in a bid to revive annual iPhone hardware updates.
The subject was raised during the company’s quarterly earnings call and has significant support among the company’s shareholders, according to a CNBC report on the matter.
Some argue that Apple could bundle subscription services like Apple TV+, Apple Music and iCloud storage, along with the hardware for a single monthly fee. The idea would be to switch from a transactional model to a subscription model, securing repeat revenue.
When questioned about the prospect during the conference call, Apple CEO Tim Cook appeared receptive to the idea, pointing out there’s already a number of customers on Apple’s iPhone Upgrade Program, which entitles them to a new iPhone every 12-months along with the perks of an AppleCare+ extended warranty.
Related: Best iPhone 2019
Cook said: “In terms of hardware as a service or as a bundle, if you will, there are customers today that essentially view the hardware like that because they’re on upgrade plans and so forth. So to some degree that exists today.”
He added: “My perspective is that will grow in the future to larger numbers. It will grow disproportionately.”
Apple is also offering customers trade-in deals for their old handsets, which is effectively another upgrade program. That also appears to be proving an effective strategy for the company.
CFO Luca Maestri added: “We also continued to see great results from our trade-in program with more than five times the iPhone trade-in volume we had a year ago.”
Just yesterday, the company announced it would be offering interest free iPhone purchases for Apple Card holders, who could pay for the device in 24 instalments and earn 3% cash back to boot.
Is Apple moving towards some kind of Prime service? Would you subscribe? Let us know @TrustedReviews on Twitter.
Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
