Rent a Iphone || Apple Is Working on a Hardware Subscription Service for iPhones ||

[darknessblade]

 

Summary

Apple Inc. is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, according to people with knowledge of the matter.

 

Quotes

Quote

Apple Inc. is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, according to people with knowledge of the matter.

 

The service would be Apple’s biggest push yet into automatically recurring sales, allowing users to subscribe to hardware for the first time -- rather than just digital services. But the project is still in development, said the people, who asked not to identified because the initiative hasn’t been announced.

 

My thoughts

Disclaimer: Please note: As I am as Anti-apple as it can get. My opinion might be Biased.

----

I can see nothing but issues with this kind of service, Especially as the specifics of the contract are still unclear:

Like

- ¹Do you own the device after the "subscription" period is over, or is it still apples property

-¹If the term is over, and you do not own the device, can you trade it in for a newer device?

- Warranty. How does this work, will they deny your claim just because their overly sensitive moisture detection stickers turned red. 

causing you to pay a Fine for damaging "their" device

- How would this work in countries that require something like a Credit check, proving you have the funds to rent said device

{Rules like this are for the protection of consumers, to prevent them from taking a needless amount of subscription/monthly paid services}

- Insurance? Like if the device get damaged by someone else, how would this work? who is to blame? who will pay for repair/replacement.

- Fineprint details of the contract. {Like not allowing users to do certain things, similar to enabling Dev_options on android}

 

Sources

https://www.bloomberg.com/news/articles/2022-03-24/apple-is-working-on-a-hardware-subscription-service-for-iphones?sref=9hGJlFio

https://www.macrumors.com/2022/03/24/apple-hardware-subscription-service/

https://appleinsider.com/articles/22/03/24/apple-working-on-hardware-subscription-service-for-iphone-other-products

 

Other:

 

 

[Kazooduck]

3 minutes ago, darknessblade said:

 

Summary

Apple Inc. is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, according to people with knowledge of the matter.

 

Quotes

 

My thoughts

Disclaimer: Please note: As I am as Anti-apple as it can get. My opinion might be Biased.

----

I can see nothing but issues with this kind of service, Especially as the specifics of the contract are still unclear:

Like

- ¹Do you own the device after the "subscription" period is over, or is it still apples property

-¹If the term is over, and you do not own the device, can you trade it in for a newer device?

- Warranty. How does this work, will they deny your claim just because their overly sensitive moisture detection stickers turned red. 

causing you to pay a Fine for damaging "their" device

- How would this work in countries that require something like a Credit check, proving you have the funds to rent said device

{Rules like this are for the protection of consumers, to prevent them from taking a needless amount of subscription/monthly paid services}

- Insurance? Like if the device get damaged by someone else, how would this work? who is to blame? who will pay for repair/replacement.

- Fineprint details of the contract. {Like not allowing users to do certain things, similar to enabling Dev_options on android}

 

Sources

https://www.bloomberg.com/news/articles/2022-03-24/apple-is-working-on-a-hardware-subscription-service-for-iphones?sref=9hGJlFio

https://www.macrumors.com/2022/03/24/apple-hardware-subscription-service/

https://appleinsider.com/articles/22/03/24/apple-working-on-hardware-subscription-service-for-iphone-other-products

 

Other:

 

 

It would most definitely not be your device, the only people I could see wanting this are enthusiasts, who would probably like modifying it, but maybe that’s my android head.

[Kisai]

5 minutes ago, kamonanban said:

It would most definitely not be your device, the only people I could see wanting this are enthusiasts, who would probably like modifying it, but maybe that’s my android head.

This is probably more in line with leasing vehicles. You never "own" it at the end of the lease, and you're limited to how many miles you can put on it. So for an iPhone or iPad this might come as battery wear remaining when you turn it in.

 

Like, it's not the "worst" thing Apple could be doing unless it was the only option. It's just taking it away from the WISP's that have been doing this since the 90's. Originally they subsidized the phones when the phones themselves were worth less than $200 in actuality. When (what become) Smartphones came out in the 2000's, the early "PDA with a cellular modem" devices cost an astronomical amount of money, and the amount of people who had them were basically just Microsoft, and a few related companies like RIM, Nokia, and AT&T itself. Basically anyone who had a stake in developing them. Come 2008 Apple basically flipped the Smartphone marked upside down, and single-handely changed the direction everyone was going, which up until that point was every vendor still producing their own OS, own hardware, and people still made purchasing decisions based on if the device even had a camera. Play music or video? Unheard of. The iPod didn't even do video yet.

 

But in the beginning (I no longer worked for the wireless company by the time the iphone came out, rather the auction site, in which a lot of counterfeit iphones were showing up) the counterfeiters didn't "get" why anyone wanted the iphone, and the iClones were not even crappy Android phones, they were basically just crappy devices that didn't even work. Many counterfeit Apple devices (such as counterfeit ipods) only did "one thing", and were just whatever cheap crap was being mass produced inside a skin/shell to look like Apple's products.

 

So years and years later, here we are, where Apple Products are now so out-of-line cost-wise that people need to lease them. Just like a car, or a home.

 

Are Android devices any better in this regard? No. Expect Samsung and Google to do the same by next year.

 

 

 

[Zando_]

Haven't they had this for a while? I remember there was a payment option to pay a flat monthly fee and automatically get the new iPhone every year. Ah yeah, this: https://www.apple.com/shop/iphone/iphone-upgrade-program. You pay a flat monthly fee, get to upgrade every 12 payments (so every year). 

[Donut417]

Hopefully they make it an option and not a requirement. I wont pay monthly for my phone. I buy every phone out right. 

[Dracarris]

3 hours ago, Kisai said:

So years and years later, here we are, where Apple Products are now so out-of-line cost-wise that people need to lease them.

There is a rather wide range of iphones between 400 and 800$ available with the same SoC, OS, ecosystem and long-term support. Absolutely nobody forces you to buy the high-end 1.x k$ Max Pro whatever flagship versions.

[Roswell]

 

3 hours ago, Kisai said:

So years and years later, here we are, where Apple Products are now so out-of-line cost-wise that people need to lease them. Just like a car, or a home.

The overwhelming majority of US phones are leased, regardless of cost. This is just Apple offering the same service that the carriers do.

[Helpful Tech Witch]

So apple is doing exactly what a bunch of people do with their carriers.

it’s not that bad dude, carriers have done it for years and years with both iphones and android phones

[Andreas Lilja]

6 hours ago, Zando_ said:

Haven't they had this for a while? I remember there was a payment option to pay a flat monthly fee and automatically get the new iPhone every year. Ah yeah, this: https://www.apple.com/shop/iphone/iphone-upgrade-program. You pay a flat monthly fee, get to upgrade every 12 payments (so every year). 

People get new phones every year? 

 

Yikes. 

[Arika]

Only way i'd be ok with this is if at the end of the "subscription" you actually own your phone outright, like when you have a monthly contract with your carrier. if not, fuck that.

[Spotty]

What is Apple going to do with the phones after the lease expires? Sell them as refurbished? Offer them as leases to other people? Dispose of them?

 

It would be interesting to see the value of leasing an iPhone through Apple compared to through a carrier. Looking at a couple of mobile phone plans in Australia it seems the total monthly device cost over the life of the contract works out the same as purchasing the phone outright. Looking at the iPhone 13 Pro Max 1TB as an example it is $2719 from Apple and from retailers to purchase outright and buying it through the monthly plan from the carrier works out to cost the same $226.58/month on 12 month contract or $113.29/month on 24 month contract ($2,718.96).

 

I guess if Apple does the same thing just charging the total cost of the device split over monthly payments and you own the device at the end of the contract then I don't see any problem with them offering the same thing the carriers offer, and the major benefit of going through Apple instead of a carrier plan means it could give you the freedom to easily switch between different carriers while keeping your device payment plan. If that's the case then I think this could be a good thing.

 

If on the other hand Apple is just leasing out phones that you don't get to keep at the end of the contract then it would need to be at a very enticing rate. iPhones typically hold their value pretty well 2-3 years after release so the cost of renting a phone from Apple would need to be on parity with the upfront cost of the phone minus the expected resale value over maybe 24 months. So if the iPhone 13 Pro Max is $2719 upfront and you can expect to sell it for $1200 2 years later if it's in good condition then the cost of renting a phone from Apple for 2 years should be about $63/month ($1519/24 months - the difference between the upfront cost and the expected resale value) for it to be worthwhile considering. At least that's how I personally would consider it if deciding between buying outright, buying on a payment plan, or leasing.

[Zando_]

1 hour ago, Andreas Lilja said:

People get new phones every year? 

 

Yikes. 

I have to assume some people do, usually super phone tech-heads who insist on being on the absolute cutting edge I guess? It'd be annoying to switch phones that fast though, and Androids usually get features quicker. I tend to upgrade every few gens, I went 6 Plus >> X >> 11 Pro Max for the battery >> 13 Pro Max pretty much just for the battery + 120hz screen.

[BondiBlue]

1 hour ago, Andreas Lilja said:

People get new phones every year? 

 

Yikes. 

Yes, plenty of people do, even those who aren't super into technology. I don't see the point in upgrading so frequently, but that doesn't mean there aren't people who always want the latest and greatest just for the sake of having it. 

[WhitetailAni]

10 minutes ago, BondiBlue said:

I don't see the point in upgrading so frequently, but that doesn't mean there aren't people who always want the latest and greatest just for the sake of having it. 

In one of my classes today we're doing presentations on digital electronics' applications, and my teacher said "I know, it's hard not to upgrade every year."

Which I find funny, since she got a 12 mini coming from an 8 last year. But a lot of my classmates upgrade just because they can. It's kinda scary - they're getting the 13 Pro Max and proceeding to use the phone in a way that an iPhone 6S - heck, even a 6 could do the job.
Another student also said Bill Gates invented the first iPhone though and proceeded to show Steve Jobs announcing the iPhone 4, then talked about the history of desktop computers and didn't mention Commodore at all.

[williamcll]

Ah yes more excuses to increase the price of phones.

[RejZoR]

Can't wait for all the Android phone makers follow Apple like absolute clowns they always are. First they'll mock them and 6 months later they'll copy them. Badly usually.

[suicidalfranco]

Removing the "My phone, I should what ever I want with it" argument

[dizmo]

This I already done by a few carriers in Canada. Not the monthly instalment plan everyone seems to be getting confused with, but a genuine you pay monthly and they keep the phone at the end of the contract arrangement. 

 

It's actually not a terrible deal. You pay less monthly for the device, and at the end of the contract you have the option to either buy the rest of the phones value out, or return it. The amount left is about a hundred, maybe a bit more than what you'd get for it used. Which honestly is worth skipping the hassle to A LOT of people. I'd consider using the program myself if the carriers it's on didn't charge so much for their plans. 

 

I see no problems with this. It's simply another way for people to get their devices, and having options is never a bad thing. You can still choose to buy it outright. 

 

As for the things you brought up @darknessblade, most of them are very simply answered, and frankly just seem to be trying to stir the pot. 

 

- Do you own the device after the "subscription" period is over, or is it still apples property

You likely have the option to return it, or buy it out. Just as you would with most things that are leased. 

-If the term is over, and you do not own the device, can you trade it in for a newer device?

They already allow that. Why would that change. 

- Warranty. How does this work, will they deny your claim just because their overly sensitive moisture detection stickers turned red. 

Causing you to pay a Fine for damaging "their" device

Probably, yes. That's exactly how it works now. Why would it be any different?

- How would this work in countries that require something like a Credit check, proving you have the funds to rent said device

They would (and this seems like it might shock you)...check your credit. They keep a CC on file and charge that. 

- Insurance? Like if the device get damaged by someone else, how would this work? who is to blame? who will pay for repair/replacement.

You can buy extra insurance, like you can now, or be careful, like you can now. None of this one makes any sense. When you lease a car you're not exempt from liability. 

- Fineprint details of the contract. {Like not allowing users to do certain things, similar to enabling Dev_options on android

Highly unlikely. I mean, you won't be able to jailbreak the device I'm sure, unless you can revert it. But that shouldn't be surprising, and if it is, you're not thinking clearly. 

 

11 hours ago, Kisai said:

This is probably more in line with leasing vehicles. You never "own" it at the end of the lease, and you're limited to how many miles you can put on it. So for an iPhone or iPad this might come as battery wear remaining when you turn it in.

 

Like, it's not the "worst" thing Apple could be doing unless it was the only option. It's just taking it away from the WISP's that have been doing this since the 90's. Originally they subsidized the phones when the phones themselves were worth less than $200 in actuality. When (what become) Smartphones came out in the 2000's, the early "PDA with a cellular modem" devices cost an astronomical amount of money, and the amount of people who had them were basically just Microsoft, and a few related companies like RIM, Nokia, and AT&T itself. Basically anyone who had a stake in developing them. Come 2008 Apple basically flipped the Smartphone marked upside down, and single-handely changed the direction everyone was going, which up until that point was every vendor still producing their own OS, own hardware, and people still made purchasing decisions based on if the device even had a camera. Play music or video? Unheard of. The iPod didn't even do video yet.

 

But in the beginning (I no longer worked for the wireless company by the time the iphone came out, rather the auction site, in which a lot of counterfeit iphones were showing up) the counterfeiters didn't "get" why anyone wanted the iphone, and the iClones were not even crappy Android phones, they were basically just crappy devices that didn't even work. Many counterfeit Apple devices (such as counterfeit ipods) only did "one thing", and were just whatever cheap crap was being mass produced inside a skin/shell to look like Apple's products.

 

So years and years later, here we are, where Apple Products are now so out-of-line cost-wise that people need to lease them. Just like a car, or a home.

 

Are Android devices any better in this regard? No. Expect Samsung and Google to do the same by next year.

It's basically already done, and they just look at device condition not battery health. Basically the same as if you were getting warranty work done. 

7 hours ago, Roswell said:

 

The overwhelming majority of US phones are leased, regardless of cost. This is just Apple offering the same service that the carriers do.

They're not really leased, they're just monthly payments. Leasing means you're not keeping the product at the end. 

5 hours ago, Helpful Tech Wiard said:

So apple is doing exactly what a bunch of people do with their carriers.

it’s not that bad dude, carriers have done it for years and years with both iphones and android phones

Not really, no. With leasing you don't keep it at the end. Not the same as just doing monthly payments. 

5 hours ago, Andreas Lilja said:

People get new phones every year? 

 

Yikes. 

Aye. There's lots of different form factors and options to try out. That's why I buy every year ish. 

5 hours ago, Arika S said:

Only way i'd be ok with this is if at the end of the "subscription" you actually own your phone outright, like when you have a monthly contract with your carrier. if not, fuck that.

Eh, I'm fine with it. Honestly I'm at the point where I'd rather take a small $50 or $100 "loss" if it meant that I simply had to turn the phone in at the end of the contract. Cost is the same either way, unless you hold onto phones for years. 

4 hours ago, Zando_ said:

I have to assume some people do, usually super phone tech-heads who insist on being on the absolute cutting edge I guess? It'd be annoying to switch phones that fast though, and Androids usually get features quicker. I tend to upgrade every few gens, I went 6 Plus >> X >> 11 Pro Max for the battery >> 13 Pro Max pretty much just for the battery + 120hz screen.

It makes sense from a value perspective as well. Upgrading yearly, I get more for the old phone when I sell it. I calculated it years ago and the price difference between holding onto a phone for 3 or 4 years vs just getting the newest one wasn't much at all. 

45 minutes ago, RejZoR said:

Can't wait for all the Android phone makers follow Apple like absolute clowns they always are. First they'll mock them and 6 months later they'll copy them. Badly usually.

It's not like Apple is the first to do this. It's a pretty basic concept. Kind of hard to fumble that badly. 

[suicidalfranco]

1 hour ago, RejZoR said:

Can't wait for all the Android phone makers follow Apple like absolute clowns they always are. First they'll mock them and 6 months later they'll copy them. Badly usually.

try again

[saltycaramel]

I feel Apple could eventually move to a sort of “Bank of Apple” system that would make them able to offer this and other kind of payments (like buy now, pay later) globally without partnering with local banking institutions (the current iPhone Upgrade Program someone mentioned is done thru a US bank called “Citizens”). 

 

But I don’t understand the regulations enough to know if this could be even possible.

[RejZoR]

50 minutes ago, suicidalfranco said:

try again

That's just renting of phones, not a subscription service. It's literally in the title. It's not that different from what cellular companies are doing where you pay off your phone with monthly instalments along with your cell subscription.

[Brooksie359]

3 hours ago, RejZoR said:

Can't wait for all the Android phone makers follow Apple like absolute clowns they always are. First they'll mock them and 6 months later they'll copy them. Badly usually.

Tbh I have found that it's mostly the android consumers that mock apple and then the android phone makers are the ones that end up following in apples footsteps. I mean I think most people can agree that Apple has lead the pack when it comes to the phone market even when not everyone is super happy about it be it with the Notch screens to the removal of the headphone jack. 

[suicidalfranco]

1 hour ago, RejZoR said:

That's just renting of phones, not a subscription service. It's literally in the title. It's not that different from what cellular companies are doing where you pay off your phone with monthly instalments along with your cell subscription.

Not sure if you're just being pedentic, tone deaf or flat-out trolling at this point

[Dracarris]

6 hours ago, Caroline said:

"But the new one has 12 cameras and mine only 10" kind of excuse combined with a ton of money to burn. Kinda why smartphones are a shitshow of ridiculous features and more memory+more cores as the sole solution to combat google's spaghetti code and lazy software devs. You need 16GB to run the phonebook because f*ck the user.

If only there would be an OS which requires less HW resources, is more energy efficient and better optimized

[saltycaramel]

I think a proper “hardware subscription” (compared to traditional rental, lease, instalments, financing, carrier subsidies, etc.) should have some peculiar characteristics

- it’s for the super long run (even 5-10 years), just like nowadays it’s normal to subscribe to iCloud continuously for a decade and counting

- it could be bundled with iCloud and other services for a discounted final bundle price (kinda like Apple One)

- likewise, it could have some synergy/discount with the Apple Card 

- it creates a predictable stream of cash for Apple (Wall Street likes this, as you may have noticed from the stock action since this rumor broke) and enhances (by means of attrition) the already pretty high loyalty rate (~85% in new iPhone season and ~75% the rest of the year)

- it creates a stream of used phones for the refurbished market

 

(as some of you may notice, most of these points wouldn’t even make sense outside of Apple’s sticky single-brand high-loyalty ecosystem and its predictable-as-clockwork update cycles)

 

 

edit: I forgot to add that on top of all this, Apple has already the credit cards of hundreds of millions of users, so it’s well positioned to one-click-sell them an “hardware subscription”