Marketing Report
[eMarketer] Apple could launch a subscription for its iPhones this year

[eMarketer] Apple could launch a subscription for its iPhones this year

Apple is working on offering a subscription service for its hardware, including its iPhone models, per Bloomberg.

By implementing a subscription model for its physical products, Apple can generate steady—and lucrative—revenues that could offset any losses should the company be required to open up its App Store to alternative payment methods, as some governments have begun requiring.

The move could also help reverse weakening consumer demand and encourage shoppers to buy directly from Apple instead of through their mobile carriers or other third-party retailers, maximizing the company’s profits.

Apple is considering bundling the hardware subscription service with existing offers like AppleCare and Apple One, which could be a differentiator for shoppers torn between purchasing through local retailers or going straight to the source.

According to  eMarketer, the subscription model has gained popularity lately, not least because it guarantees companies recurring revenues and access to a dedicated group of customers, many of whom might be persuaded to spend more on other products.

Read the full eMarketer article here