Apple Is Working on a Hardware Subscription Service for iPhones
bloomberg.com
bloomberg.com
I clicked through on the ad just now (it seems to be following me), and the landing page actually has a section, explaining the difference between this subscription that they're selling versus leasing.
The page also doesn't have the disclosures that would be legally required if it were a consumer credit product that they were selling.
So it does seem like it's something quite distinct.
We can split hairs, but you pay a monthly charge and you don’t own the item but get to use it.
The lease terms are different, but you are still effectively leasing it.
With phones most people buy them with a monthly charge anyway that’s embedded into the phone contract.
But what good is all the money when we, the animals, the insects, and the planet in general, are dead?
The only reason you want a new phone at this point is to reinforce your feeling of superiority over the other monkeys. Neither that, nor the money, is worth what we have to pay for it.
That’s if we want to leave the planet for animals and insects to enjoy it… or are we the dominant ones that should enjoy it?
True. I remember going to the "electronics shop" in my neighbourhood to have the family VCR and CD player repaired. My family has a Sony CRT TV that lasted from 1998-2018, needing only occasional repairs, doable with parts available at the local shop.
Toyota and Honda 'dumb' cars are still this way; repairable at any body shop, with parts that don't cost an arm and a leg. I'm never going to purchase a Tesla or some other car (BMW/Mercedes/others) that give you little choice about where to go for service.
E.g. Apple will want a device that doesn’t shatter when you drop it, maybe they will fix that if they own it…
iPhone Upgrade Program involves you buying a phone outright, financed via a loan from Citizens Bank. The loan is written so that you have certain rights to turn in the phone, buy a new one, and that clears out the remaining original loan balance regardless of the phone's value.
- Pressure from stockholders for Apple to find more avenues for recurring revenue
- Price of iPhones is going to go up even further, and "subscriptions" are a convenient way to mask the full increase.
Wouldn't be surprised if we are seeing "ad-supported" iPhones (like Kindle tablets have done for years), what with Apple becoming a 'services' company.
Americas economy is in a rat race where large corporations must demonstrate year over year growth. This is incentivizing this dark pattern behavior, where ultimately, the consumer will lose.
> technically it’s a finance agreement and you own the phone, but in reality people don’t buy phones fully outright and it’s closer to a subscription service than outright purchase for most people
A finance model and a subscription model are two different things. I’m baffled why you’re conflating the two and especially this comment, “it’s closer to a subscription service than outright purchase for most people”.
When you finance a purchase, you agree to make small payments over some period. At the end of the period, assuming your balance is paid off, you own the product. Not the bank. Not Apple. You.
A subscription model is where you pay every month in exchange for the right to use or access something. For example, I wanted to watch some TV shows my friends have been raving about. I subscribed to Apple TV+ for one month, watched both seasons, and then cancelled my subscription. I can no longer watch the show. I have no remaining claim unless I restart my subscription.
So I'm a little baffled as to why you are baffled that a 'pay monthly for a service where you don't own the phone for 3 years' could be considered more similar to the concept of a subscription than the concept of outright ownership.
Would you prefer the term 'Phone contract subscription with an inclusive phone hire-purchase agreement'? (Which I still think is more similar to a subscription than outright ownership).
Yes, this how is how a finance model works. Why are you giving us an example of financing works when the real question is on purchasing (with or without financing) vs leasing?
> So I'm a little baffled as to why you are baffled that a 'pay monthly for a service where you don't own the phone for 3 years' could be considered more similar to the concept of a subscription than the concept of outright ownership.
Your statements are inaccurate.
For all practical purposes, if I purchase a new iPhone from ATT or T-Mobile on contract, I do own the phone. It’s now mine. I can’t skip my contractual obligations and just ask ATT to take the phone back. I keep the phone but the full balance becomes immediately due.
Financing and leasing are two different things.
What do you think owning something outright means?
(If i can own something outright while it not legally being mine, and me paying for its use monthly via a contract, you have a more flexible definition of outright ownership than me!)
With this definition, I own my home outright with a mortgage. (This is of course nonsense, and by definition owning outright means it is unencumbered).
Here (Israel) carriers sell phones, but that's optional and they have to compete with non-carrier stores.
The techno-libertarian wing of HN will be incensed about this decision, but this move by Apple is clearly within their thoughts about reducing their environmental impact through reusing more of their iphones. When a user wants to upgrade, they can just return their phone to apple without the friction of having to resell it.