Obnews Tech Desk: Apple has taken a big decision regarding iPhone subscription service. After working on this project for two years, the company has closed it. This service was supposed to allow customers to get a new iPhone every year by paying a subscription fee.
What was the iPhone subscription plan?
According to reports, this project of Apple was under hardware subscription service. In this, instead of buying an iPhone, users could get a new iPhone every year through subscription. The responsibility of this project was given to Apple Pay division. But, Bloomberg reports suggest that due to various reasons the project could not be launched on time and has now been cancelled.
Delay and investigation became the reason
The project was planned to be launched by the end of 2022, but was delayed due to various reasons. Additionally, the company was concerned that the Consumer Financial Protection Bureau (CFPB) might investigate it. CFPB had also said that companies offering services like “Pay Later” will have to follow rules like Visa and Mastercard.
Pre-existing iPhone Upgrade Program
It is worth noting that Apple is already running the iPhone Upgrade Program in the American market. In this, users can upgrade iPhone in two years. The new subscription program was to replace it.
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Big blow for Apple
iPhone sales constitute a large portion of Apple's revenue. The plan was to attract new customers through the subscription model. But, now this project has been stopped.
Pay Later program also canceled
This year, Apple also discontinued the “Pay Later” program, which allowed customers to pay for purchases up to $1,000 in four installments.
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