The consumer has several ways to purchase his mobile device: Buy in electrical goods stores, order online or buy directly through the official importer – and this is usually an expense that amounts to thousands of shekels. Now, it seems that Apple may change the market and wants us to start paying for the hardware through a monthly subscription – similar to the company’s streaming and cloud services.
According to a report in the Bloomberg news agency, as part of the plan, which will be launched during the next year, the customer will be able to upgrade the old iPhone every time a new model is launched – as long as he pays the monthly payment. The final price also includes access to some of Apple’s online services, which are currently sold as a separate package in the Apple One service – such as Apple Music, storage in iCloud and Apple TV Plus.
In fact, the program may speak more to the tech giant’s die-hard fans, who are already paying for the company’s services anyway, and are likely to upgrade their device every year. The emerging prices (not final).
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- IPhone 13 – $ 35 per month ($ 420 per year)
- IPhone 13 Pro – $ 45 a month ($ 540 a year)
- IPhone 13 Pro Max – $ 50 ($ 600 per year)
IPhone SE (Photo: Apple)For comparison, the iPhone 13 Pro model sells for $ 999 in the store, so the customer can save $ 460 if he switches to the monthly subscription model. According to Bloomberg, the average iPhone user upgrades the device every three years, and consumers only upgrade when they feel it is necessary. The most common reasons for upgrading are as detailed.
- Cracked screen – The cost of replacing the screen is expensive and in fact it is better to already buy a new device
- Desire to upgrade to a larger screen
- IPhone too old to no longer receive operating system updates (iOS)
- Desire to upgrade storage volume
- New design for iPhone
In the long run, Apple will benefit from the old devices that customers return – which it can renew and sell again. In addition, it will “block” the escape of users to Android by causing the customer to pay part of the amount on a device that is not left with him in the end, but does offer him to get another one instead of losing the money. However, the company may also offer additional products as part of the service – iPads, smartwatches or computers.
There is already a similar service in the US (Upgrade Program), where Apple allows the customer to purchase an iPhone for a fixed monthly fee, with a point of departure after two years, and the option to upgrade after 12 months. The customer can make a trade-in transaction or purchase a new one in a new transaction.