Apple is preparing an iPhone hardware subscription service that will revolutionize the buying process, allowing users to essentially lease their iPhone and get a brand new model every year.
Mark Gurman for Bloomberg News:
Apple’s rationale for doing this is very simple: making more money.
Right now, it’s only really diehard Apple fans that get new iPhones every year… The average iPhone user upgrades the device every three years. That’s actually a less frequent rate than about a decade ago, when carriers pushed subsidies and discounts every two years.
According to Counterpoint Research, the average iPhone sales price is about $825. That means Apple is generating a bit over $800 from the typical iPhone customer every three years.
That’s exactly why Apple is working on a subscription service. What if it could boost that $800 to north of $1,000 and get the old phone back to sell on the secondary market?
MacDailyNews Take: As we wrote last week, “Many Mac, iPhone, and iPad users would flock to this subscription services if Apple does indeed offer it – especially those who like to stay current on Apple’s latest and greatest devices. It would allow Apple to sell to most price-sensitive customers while generating even greater loyalty to the company’s products.”
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