How Apple's iPhone subscription service could be the ultimate lock-in trap
Macworld|May 2022
Apple is rumored to be launching a hardware subscription service, but how will it work?
MICHAEL SIMON
How Apple's iPhone subscription service could be the ultimate lock-in trap

Apple is reportedly preparing to make a major change to the way it sells iPhones. You'll still be able to plunk down $1,000plus on the latest and greatest iPhone if you want, but the company is rumored to be launching a new subscription service (see page 46) that lets you essentially lease iPhones and other devices for a fixed cost.

There aren't a lot of details about the program, but it will reportedly begin with the iPhone before expanding to other devices. As it stands, Apple already offers the iPhone Upgrade Program (fave.co/3uQucCa), which lets you spread the cost of a new iPhone with AppleCare+ over the course of two years. That program is essentially a loan that requires a credit check and monthly payments to a bank, with an option to upgrade to a new model (and loan) after 12 payments.

If you upgrade regularly, it's a great program for everyone involved. You get a new iPhone and Apple gets to keep a customer while also getting a used phone to flip for a tidy profit. You can probably get more for a year-old iPhone by selling it privately or to a third-party reseller, but nothing beats the ease of upgrading in the program: Order your new iPhone, put your old one in the supplied box, and you're done. There's no extra cost or hassle.

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