Apple has reportedly ditched its plan to create a hardware subscription service for the iPhone, a concept that industry observers have anticipated for a long time.
The idea gained traction in 2022, with predictions that Apple will introduce a monthly subscription model similar to App Store payments, sponsored directly by the business. However, Apple has decided to shift its focus.

Existing Payment Models Take the Spotlight
Apple already offers alternatives that are comparable to the subscription service. The iPhone Upgrade Program, in particular, allows customers to pay a monthly price for the current iPhone model, with the possibility of upgrading to a new handset every year. Citizens Bank NA funds this initiative, which also offers AppleCare+ as a bundle feature, providing users with peace of mind regarding device maintenance.
Another alternative is Apple Card Monthly Installments, which allows buyers to stretch the cost of an iPhone over time. These initiatives, combined with third-party financing alternatives and carrier-led payment plans, demonstrate that Apple is not short on solutions for users seeking flexible payment options.
Why Apple May Have Cancelled the Subscription Service
Several benefits of a hardware subscription are already available via the iPhone Upgrade Program, such as the opportunity to switch to a new device annually. This overlap may have reduced the requirement for a solo subscription model. Additionally, Apple's decision to send users to 3rd party loan services indicates a preference for using existing infrastructure instead of establishing new, in-house financial operations.

The Road Ahead
Apple is fine with enhancing its existing offers instead of adopting a new subscription model. Customers can still access flexible payment plans via existing programs, ensuring affordability without complicating Apple's ecosystem.
While the hardware subscription model is on hold, Apple's concentration on perfecting its payment systems guarantees its users have various dependable options for upgrading to the latest devices.