Rent your next iPhone

Cupertino could introduce a subscription based model to circumvent rise in smartphone prices

According to an article by CNBC, Apple maybe mulling over the idea of offering the iPhone as a subscription service. Instead of buying the device with cold hard cash, sometime down the road, consumers may be able to lease their favored iPhone for a monthly fee. Tim Cook’s response to this topic during this week’s earnings call, lends credence to the notion.

When asked by analyst Toni Sacconaghi, about the subscription based approach, Apple’s CEO entertained the idea by saying that the company is already planning to implement something similar. This answer should come as no surprise to anyone because a subscription based model, allows expensive products to become relatively affordable to the general consumer.

The gradual slowing of growth and eventual decline in iPhone sales has lead Apple to diversify its product portfolio by incorporating Services into its business model. Besides Cloud storage, App Store, Apple Music and Apple TV+, Cupertino has also dipped its toe in the financial sector with its own credit card that is backed by Goldman Sachs.

Since the iPhone X, Apple has pushed the boundaries of smartphone ceiling prices, placing its flagship devices out of reach of the common man. But, when packaged as a subscription service, the $1099 iPhone, will be well within reach of us commoners. There’s no word yet on when Apple plans to introduce such a plan, but the plan should come to fruition in the near future.

Source: CNBC