Apple may be launching a new service for people who do not want to pay the full price for an iPhone up front. According to Bloomberg, Apple is preparing to establish a hardware subscription service that would allow consumers to pay a charge to use iPhones and other Apple gear instead of paying full price at the time of purchase.
The firm already provides a variety of digital subscription services, such as Apple TV+ and Apple Fitness+.
Apple already has a monthly iPhone pricing plan in its iPhone Upgrade Program (IUP), which allows customers to split the cost of their iPhone over two years with an option to trade-in the smartphone after a year of payments.
IUP requires a 24-month installment loan from Citizens Bank and a credit check, and it remains to be seen whether the company’s new service will require one.
For Apple’s newest service, Bloomberg reported that instead of paying monthly installments over 12 or 24 months, subscribers would pay a “yet-to-be-determined monthly fee that depends on which device the user chooses.”
As The Verge points out, IUP also allows customers to keep their phones when they have finished making their payments unless they have traded the device for a new iPhone before that point.