Reports say Apple has given up on offering 'iPhone subscription sales service'

Bloomberg, an economic newspaper, reported in 2022 that 'Apple is planning a subscription sales plan for the iPhone.' However, the iPhone subscription sales plan, which was originally scheduled to start in 2022, was postponed, and Apple ultimately canceled the plan.

Apple (AAPL) Halts Effort to Build iPhone Hardware Subscription Service - Bloomberg
https://www.bloomberg.com/news/articles/2024-12-18/apple-halts-long-running-effort-to-build-iphone-hardware-subscription-service

Apple reportedly won't launch an iPhone subscription service - The Verge
https://www.theverge.com/2024/12/18/24324485/apple-iphone-subscription-service-wont-launch

For Apple, the iPhone is the main device that is the source of revenue, and iPhone sales account for nearly half of the annual sales. Therefore, increasing the number of iPhones sold is important for Apple, and by having users purchase Apple products, it is also possible to keep users in the Apple ecosystem.

So Apple started working on a subscription plan for the iPhone, which would allow users to use the iPhone for a monthly fee. The plan would allow users to upgrade to a new iPhone every year by paying a monthly fee, just like they would for apps and web services.

Reports that Apple is planning 'iPhone subscription sales plan' - GIGAZINE

The iPhone subscription sales plans, overseen by the Apple Pay division, were scheduled to launch in 2022 but were hit by issues including software bugs and regulatory concerns and were delayed until 2023 or later.

However, on December 19, 2024, Bloomberg reported that Apple was moving away from subscription sales plans for the iPhone, and according to people familiar with the matter, the team working on the project had been disbanded and reassigned to other projects.

Bloomberg points out that the iPhone subscription sales competed with carriers that had previously offered similar services, upsetting these companies, who are important sales partners.

In addition, Apple began offering a deferred payment service using Apple Pay in March 2023, but announced the end of the service as early as June 2024. Bloomberg explained that the main reason for the company's abolition of 'Apple Pay deferred' was the Consumer Financial Protection Bureau's tightening of rules. Since iPhone subscription sales plans use a similar structure and technology, Apple was concerned that it would face similar problems, Bloomberg said.

Apple announces that it will end its deferred payment service 'Pay Later with Apple Pay' - GIGAZINE