Attention iPhone Fanatics! Apple Is Weighing Up An iPhone Subscription Service

Attention iPhone Fanatics! Apple Is Weighing Up An iPhone Subscription Service
SHARE
THIS



Buying an iPhone could soon be a thing of the past, with Apple reportedly weighing up a new subscription model for the phones.

Under the potential new business model, the company would offer iPhone subscriptions to customers, allowing the business to secure continual and recurring revenue.

Having launched video streaming service Apple TV+ just this week and also pushing into gaming and news subscriptions, an iPhone subscription model would fit in well to Apple’s overall strategy.

iPhone sales currently account for around 50 per cent of Apple’s total revenue.

Goldman Sachs analyst Simona Jankowski told clients the potential change to the business model would allow the iPhone-maker to compete with other tech giants.

“We think Apple should launch a subscription bundle as a way to reinforce iPhone loyalty and leverage it into content,” she said.

“This strategy would help Apple fend off smartphone commoditisation and position it well vs. Amazon and Alphabet as content shifts to streaming.

“In our view, Apple needs to invest with urgency and scale in a tightly integrated content strategy.”

And while it might sound far-fetched, Apple’s CEO Tim Cook has recently discussed the merits of a ‘hardware-as-a-service’ model.

″In terms of hardware-as-a-service or as a bundle, if you will, there are customers today that essentially view the hardware like that because they’re on upgrade plans and so forth,” he said.

“So to some degree that exists today.

“My perspective is that will grow in the future to larger numbers. It will grow disproportionately.”

The CEO added that he is aware of the public’s interest in a subscription model and “committed to make that easier to do than perhaps it is today”.

Subscription models have been a growing trend in technology recently, most notably led by the rise of the software as a service (SaaS) distribution model.

Adobe has enjoyed great success since switching from one-time purchases to its current SaaS model in 2012.

Please login with linkedin to comment

Apple iPhone

Latest News

Highsnobiety Partners With Citizens Of Culture To Help Lead Its Media Partnerships In Australia
  • Media

Highsnobiety Partners With Citizens Of Culture To Help Lead Its Media Partnerships In Australia

Culture-leading publisher Highsnobiety continues to evolve its local operations with the appointment of Citizens of Culture as its strategic partner across media operations within Australia.  Highsnobiety is a premium global brand dedicated to cultural pioneers, with work spanning across digital platforms, print media, documentaries, cutting edge events, a shopping platform and a full service creative […]

Investigation Reveals That Amazon Destroys Thousands Of Dollars Of Unsold Stock, Including Laptops, TVs And Face Masks
  • Technology

Investigation Reveals That Amazon Destroys Thousands Of Dollars Of Unsold Stock, Including Laptops, TVs And Face Masks

An investigation by British broadcaster ITV has found that Amazon is destroying millions of items in unsold or returned stock. The report specifically focuses on one of the 24 warehouses the company has in the UK. According to ITV News, the destroyed items are largely unused and new, either returned items or those which never […]

by B&T Magazine

B&T Magazine
Witchery Partners With GlamCorner To Boost Subscription Shopping
  • Media

Witchery Partners With GlamCorner To Boost Subscription Shopping

Australian fashion brand Witchery has partnered with B Corp GlamCorner as part of GlamCorner’s subscription box offering as the demand for everyday essentials soars. This partnership marks another milestone for the Australian fashion industry towards becoming more circular and introducing more paths to reduce textile waste. Customers nationally will be able to rent more of […]

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000
  • Marketing
  • Media

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000

The media, marketing and creative industries are being encouraged to host their own ‘Curry Club for COVID’ before 30th June to help meet the ambitious $100k target set by its organisers. Curry Club for COVID, which was conceived by long-time adtech executive Peter Bray, sales director at Impact, and is powered by industry social purpose organisation […]

by B&T Magazine

B&T Magazine
UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years
  • Media

UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years

The UnLtd Cup is returning for its tenth consecutive year, marking a decade of soccer shenanigans that’s raised nearly $500,000 for children’s mental health charity, KidsXpress. On July 22-23rd, 28 teams from across the industry will battle it out on the soccer field in the two-day tournament at Sydney University Sports and Fitness Centre, Darlington. […]

Mobile Pnone Shopping Online With A Debit Card
  • Marketing
  • Technology

Ultra Commerce Acquires Vesta eCommerce

Australian-bred company Ultra Commerce has acquired New Zealand-based company Vesta eCommerce, a global software business providing leading product data management solutions. The recent acquisition is a significant move for the business, which is Australian born, owned, and headquartered, but has built out a global presence as it pursues rapid growth in the eCommerce market. Connecting […]

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. The campaign aims to bring awareness to Canteen’s […]