Apple’s iPhone subscription plan may have been scrapped before it even launched — what we know

iPhone 16 family
(Image credit: Future)

Over the past couple of years, we’ve heard rumors that Apple may launch its own iPhone subscription service. The idea was that users pay a monthly fee, which gets them access to the latest iPhone model a little more easily. But now it sounds like those plans may have been scrapped.

According to a report from Bloomberg, the plan was to “make owning an iPhone like subscribing to an app.” However, the project has apparently been “recently wound down,” with software issues and regulatory concerns getting the lion’s share of the blame.

Bloomberg says that the subscription would be different from signing up for a regular installment plan somehow — but doesn’t really detail how. All that’s been said is that users would sign up for the service and pay a monthly fee through their Apple account, and then have the choice to upgrade to the newest iPhone model each year.

The real benefit to users is being able to switch their iPhones regularly, presumably without any financial penalty. What isn’t clear is what happens to people who don’t opt for such frequent upgrades as I’m struggling to figure out how this is any different from existing installment and payment plans.

Presumably, upgrading relies on returning your existing iPhone in good condition, just like trading in works already. But what happens if you keep it? Do you continue making monthly payments forever, as if you’re renting the iPhone from Apple? Or is there a limit to the number of payments you need to make, after which the phone becomes yours? Because that’s just an installment plan, which is already available in abundance.

Perhaps that’s why this whole thing shut down. Bloomberg speculates that Apple could have upset its wireless carrier partners with this idea since it would cut into their existing business dealings. Apple may do a lot of business itself, but carriers are responsible for selling the majority of phones in the U.S. Getting on their bad side would not be good for Apple’s bottom line.

Bloomberg also speculates that the subscription would be too similar to Apple Pay Later, an interest-free installment plan that was recently canceled due to stricter rules from the Consumer Financial Protection Bureau — which would see “pay later” services regulated the same way as credit card companies. Apple may have decided that increased regulations for such a small section of the business may not have been worth it.

Whatever the reason, it sounds like you won’t be able to subscribe to get an iPhone anytime soon. At least not from Apple. Your only other option is to get some kind of payment plan with literally every other retailer and carrier that sells iPhones. So you’re still pretty spoiled for choice. As for things Apple isn't scrapping, check out Apple Maps' big upgrade to rival Google Maps.

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Tom Pritchard
UK Phones Editor

Tom is the Tom's Guide's UK Phones Editor, tackling the latest smartphone news and vocally expressing his opinions about upcoming features or changes. It's long way from his days as editor of Gizmodo UK, when pretty much everything was on the table. He’s usually found trying to squeeze another giant Lego set onto the shelf, draining very large cups of coffee, or complaining about how terrible his Smart TV is.

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