Apple Developing Hardware Subscription Service

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FineWine

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Nurse (R)

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#295410 27-Mar-2022 13:39

First read about this the other day in: https://www.macrumors.com/2022/03/24/apple-hardware-subscription-service/

Then today in: https://www.newshub.co.nz/home/technology/2022/03/apple-planning-monthly-iphone-ipad-hardware-subscription-service-report.html

First off this is just another huge revenue grab and to increase their product uptake by more punters.

My household Apple products (ref signature) last, on average, 7 years. We have had two iPhone models x 2, two iPad models x 2 and one iPad mini in 14 years. The only reason we upgraded was because of the app's were out growing the memories and we were out growing the storage plus 3g to 4g.

So for these products we would not take up this proposed/rumoured new service. However if they introduced this for an iMac, preferable 27", then we would consider that. I mean the prices of their desktops are astronomical and we just love the 27" screen and take full advantage of the acreage. But like all these types of services you have to do the maths and match the result to your requirements.

Lets wait and see.

Whilst the difficult we can do immediately, the impossible takes a bit longer. However, miracles you will have to wait for.

antonknee

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#2892717 27-Mar-2022 14:09

Depending on the price and how it stacked up against selling your old device, and whether they allow upgrades (the article says this is in consideration), I'd probably buy into it. Particularly for the stuff I use for my business, this would likely be an operating expense, which beats claiming depreciation IMO - so that's a bonus in my books.

I upgrade my tech pretty regularly (even though I probably don't need to, but I enjoy technology and trying new devices, so it's like a hobby in a way). To achieve this, I set aside some money each month into a 'sinking fund' for device purchases - so I'm essentially buying a device subscription from myself anyway.

nztim

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TEAMnetwork

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#2892745 27-Mar-2022 14:33

I ran my iphone 6+ plus from 2015 for years until I upgraded to an iPhone 12

Only upgraded due to battery fatigue

Any views expressed on these forums are my own and don't necessarily reflect those of my employer.

Behodar

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#2892761 27-Mar-2022 14:42

I hung onto my previous iPhone for 4.5 years, my Mac laptop is approaching 7 years and still works fine (it even still lasts most of a day on a single charge), and I have the last 27" iMac which should still last a while. A subscription probably isn't for me.

FineWine: However if they introduced this for an iMac, preferable 27", then we would consider that.

Unlikely considering the 27" model has been discontinued! Apple has consolidated the 21" and 27" models down to a single 24" model.

alasta

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#2892784 27-Mar-2022 14:56

It's not really my thing. I prefer to buy outright, and when the device is two or three years old then I decide whether to replace or extend its lifespan based on my financial situation at the time. If I decide to replace then I hand down the old unit to friends or family.

mattwnz

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#2892800 27-Mar-2022 15:43

The question is whether it could end up being the only option. I remember when you used to buy Adobe software outright and you paid several thousands of dollars with no expiry date. Then they moved to a new subscription model and removed the option to buy outright. Then they turned off the activation servers rendering some of the software people purchased outright being unable to be reinstalled. I really hope apple isn't moving to this sort of model for everyone eventually where you don't even own the hardware

K8Toledo

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#2892816 27-Mar-2022 16:33

This sounds like hardware leasing, why are they calling it a subscription service?

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wellygary

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#2892821 27-Mar-2022 17:20

K8Toledo:

This sounds like hardware leasing, why are they calling it a subscription service?

Because there is a whole generation that has grown up with such services.. and it’s a term they understand...

People used to buy CDs and DVDs , now they subscribe to Netflix and Spotify...

Apples accountants think they have discovered another market segment to extract additional revenue from...

I doubt Apple will majorly move from selling hardware .. but if it can squeeze $ from those whose would not have bought their products before... they will be all over it..

K8Toledo

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#2892940 27-Mar-2022 23:28

wellygary:

Because there is a whole generation that has grown up with such services.. and it’s a term they understand...

People used to buy CDs and DVDs , now they subscribe to Netflix and Spotify...

Apples accountants think they have discovered another market segment to extract additional revenue from...

I doubt Apple will majorly move from selling hardware .. but if it can squeeze $ from those whose would not have bought their products before... they will be all over it..

Yep, although end users/consumers might not be so confused if vendors were a little more transparent?

Reminds me of MS shepherding confused MSO users over to 365 subscription after "rebranding" Office suite.

When an Apple subscription runs out will the iPhone stop working? :D /s

lxsw20

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#2892941 27-Mar-2022 23:43

They were already doing this in some parts of the world using the iPhone Upgrade Programme. Come new phone day you could walk into a shop and pick up a new phone. You could also just pay the phone off and not upgrade, once the phone was paid off you own it. This was through a 3rd party finance company in the UK.

It sounds like they are looking to cut the middle man and directly do the financing.

Torque

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#2894410 30-Mar-2022 21:22

VF used to have a 'new phone every year' upgrade deal for $20/month on an existing plan, that got me at least one new iPhone. Long since discontinued.

FineWine

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Nurse (R)

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#2894486 31-Mar-2022 08:49

lxsw20:

They were already doing this in some parts of the world using the iPhone Upgrade Programme. Come new phone day you could walk into a shop and pick up a new phone. You could also just pay the phone off and not upgrade, once the phone was paid off you own it. This was through a 3rd party finance company in the UK.

It sounds like they are looking to cut the middle man and directly do the financing.

I wonder if it is linked to this: Apple Developing In-House Payment Processing Technology for Future Finance Products

Whilst the difficult we can do immediately, the impossible takes a bit longer. However, miracles you will have to wait for.