Report: Apple To Launch Subscription Services for Devices

As I have been saying for quite some time, even before Apple announced its recent price increases, Apple is, according to Bloomberg, getting ready to announce what amounts to a subscripton service for some Apple devices.

There have been rumors of Apple offering hardware subscriptions for some time, but with the costs of hardware rising due to the consumer device RAM shortages brought about by the demand for more AI ready chips for data centers and the like, the timing seems right that we were going to see some sort of financing type arrangement for computers beyond credit cards and others that currently exist.

While there are not many details in the Bloomberg report, I’m sure these will roll out eventually, but the one detail mentioned (assuming it is correct) is this:

The Apple Upgrade service will work like a subscription and users can pay off the device early during their term, upgrade early to a new model or keep it at the end of the leasing period. In certain cases, those transactions will incur an additional fee. Like a car lease, it can also be returned at the end of the term.

Leases for iPhones and Apple Watches will run for 24 months, while Mac and iPad plans will run for 36 months. Users will need to be approved for the program via a soft credit check.

Again, this is just a report, but what I find interesting is that Apple is leaning into the 2 and 3 year cycle for users leasing devices, while at the same time Apple and all of the AI bros are pushing technology in what seems like a race with no finish line that will inevitably require newer and faster chips more quickly than the duration of those leasing cycles

The Bloomberg report says that the program won’t include AppleCare, and also that the Apple Watch SE, entry level iPad, iPhone 16, and MacBook Neo will not be eligible.

As I’ve been saying, we’re heading into an age of segmented computing, dividing the “able to haves” from “those not able.” While this may look, feel and be marketed like a way to lower the cost of computing close to the edge and trend lines, in the end, and as always, those who control financing operations will be the winners.

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