Power On: Apple's iPhone Subscription Service

Apple is developing a subscription service for iPhones, allowing users to pay monthly through their App Store account. This service differs from traditional installment plans by offering a proprietary price based on the iPhone model, enabling users to upgrade annually. The initiative aims to increase Apple's recurring revenue while providing consumers with more frequent access to new iPhones without the upfront cost. Apple is also considering integrating this service with Apple One and other offerings. The launch is anticipated in late 2022 or 2023.

What is the main difference between Apple's proposed iPhone subscription service and traditional installment plans?

• The subscription service is cheaper than installment plans.

• The subscription service is based on a proprietary price for each iPhone model.

• The subscription service requires a longer commitment period.

• The subscription service is only available for older iPhone models.

How often can users upgrade their iPhones under the new subscription service?

• Every year

• Every six months

• Every two years

• Every three years

What financial benefit does the iPhone subscription service offer to consumers?

• It offers a discount on Apple Music subscriptions.

• It enables consumers to get new iPhones without paying the full price upfront.

• It allows consumers to pay less than $500 for a new model.

• It provides free Apple Care with every subscription.

What additional service is Apple planning to integrate with the iPhone subscription?

• Apple Books

• Apple Fitness Plus

• Apple One bundle

• Apple Arcade

What other financial service is Apple developing alongside the iPhone subscription?

• A 'buy now, pay later' service for Apple Pay

• A cryptocurrency wallet

• A new credit card

• A stock trading platform