The company could replace the traditional sales model with a new subscription model which could be called Apple Prime.
Apple could launch a programme to sell its iPhones on a subscription basis, according to a new report. The speculation is based upon comments given by CEO Tim Cook during the recent Q4 earnings call.
Cook told CNBC that Apple is planning to sell iPhones based on a monthly premium. The company could replace the traditional sales model with a new subscription model which could be called Apple Prime.
“In terms of hardware as a service or as a bundle, if you will, there are customers today that essentially view the hardware like that because they’re on upgrade plans and so forth”, said Cook.
He further hinted about something on the lines of a subscription model. As per the report, Apple will bundle its services like Apple TV+, Apple Arcade, Apple Music and Apple Pay along with the iPhone for a monthly fee.
The company does offer an upgrade plan in the US wherein customers pay for their iPhones on a monthly basis. After paying for a year, the customers can trade their old iPhone with the latest one.
Apple could possibly club its services to the existing iPhone Upgrade Program under Apple Prime. This would not only increase its sales and revenue but also be an easier way for people to get on board with Apple’s list of services.Recently, Apple unveiled the Apple TV Plus service in India. It starts at Rs 99 in India and can be shared by six people. Interested users can avail of a free trial of the Apple TV Plus for a week. Apple will charge Rs 99 for a monthly subscription, which will get renewed automatically unless the user prompts. One should note that the service is priced affordably, considering its price in the US, which is $4.99 per month.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.