Apple is said to be creating a subscription model for all of its products so that customers can easily get their favourite products. This model will allow users to pay a monthly charge to acquire the latest iPhone model every year.
According to a new research, Apple could make more money from its subscription service than from people purchasing new devices. In his current Power On newsletter, Bloomberg’s Mark Gurman provided figures, claiming that over the course of three years, Apple may make a few hundred dollars more than the upfront purchase of an iPhone paid by a client.
Customers won’t have to pay a huge sum to upgrade their smartphone with Apple’s iPhone subscription. According to Gurman, Apple could make more money than the average selling price of an iPhone, which is $1,260 (approximately Rs 95,100), by charging $35 per month (about Rs 2,600) for the iPhone 13, which costs $799 (roughly Rs 60,300). According to the report, this cost is estimated over a three-year period, which is the usual time it takes for a user in the United States to upgrade their phone.
Gurman also analysed how much money Apple could generate if the iPhone 13 Pro had a $45 (approximately Rs 3,400) monthly subscription. Apple is expected to make $1,620 (approximately Rs 1,22,200) in this market, compared to the $999 sticker price of the iPhone 13 Pro (roughly Rs 75,400).
Finally, Gurman claims that Apple may earn up to $1,800 (approximately Rs 1,35,800) with the iPhone 13 Pro Max over the course of three years for a $50 (about Rs 3,800) monthly cost. The iPhone 13 Pro Max starts at $1,099 (approximately Rs 82,900) and goes up from there.
With this model, customers will be able to keep their iPhones for longer because Apple’s iPhones offer software updates for more than five years. Some people change their iPhone every year, which may be a costly proposition. Customers who wish to upgrade to a new iPhone every year will benefit from a subscription model, as will Apple, because consumers will be locked in to the subscription service for a longer period of time.