According to sources familiar with the topic, Apple Inc is working on a subscription service for the iPhone and other hardware devices, a move that could make gadget ownership akin to paying a monthly app charge.
The service would be the company’s boldest push towards automatically repeating sales yet, allowing consumers to subscribe to hardware rather than simply digital services for the first time. The proposal, however, is still in the works, according to the sources, who asked not to be identified since the effort has yet to be revealed.
After Bloomberg published the news on Thursday, Apple shares surged to a session high, closing up 2.3 percent at $174.07. Apple’s stock has now increased for eight days in a row, despite the fact that it is still down 2% for the year.
Adopting hardware subscriptions, similar to an auto-leasing scheme, would be a significant business move for a corporation that has always sold gadgets outright, with some payments or carrier subsidies. It might help Apple earn more income and make spending thousands of dollars on new gadgets more bearable for users.
The iPhone is already Apple’s most profitable product, garnering about $192 billion in revenue last year – more than half of the company’s total income.
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