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Apple ‘laying groundwork’ for iPhone and services subscription bundle – report

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.

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