Apple Has Large Base of Users That Could Adopt iPhone Hardware Subscription Service [Report]

Apple has a large base of users that could adopt an iPhone hardware subscription service, according to a new report from Consumer Intelligence Research Partners.

Last week, a report from Bloomberg revealed that Apple is working on a hardware subscription service that would let users pay a monthly fee for iPhone and other devices. CIRP analyzed consumer behavior for subscription-related services and believes that iPhone owners use these services frequently enough that Apple has good base of users that would embrace a hardware subscription service. Almost half of iPhone owners already finance their purchase, two thirds use paid iCloud storage, and almost half subscribe to Apple Music.




“Based on current consumer behavior, iPhone users are primed to adopt a subscription service that provides an iPhone bundled with useful apps,” said Josh Lowitz, CIRP Partner and Co-Founder. “Almost half iPhone owners already finance their iPhone purchase, paying monthly for a new phone. And about one-third trade-in their old phone when they buy a new one. So, a significant portion of the user base is accustomed to never owning a phone, instead basically leasing it. Importantly, iPhone users also have grown accustomed to getting a new model every two or at most three years. Apple can easily match these patterns with a program that routinely sends a new phone in exchange for the old one.”

“Apple also provides critical apps on a monthly subscription,” said Mike Levin, CIRP Partner and Co-Founder. “Paid iCloud storage has been around longest, and about two- thirds of iPhone owners pay its monthly fee. Apple Music is the paid streaming service that replaced iTunes, and almost half of iPhone owners subscribe in a very competitive streaming music marketplace. Apple TV+, the newer video streaming service, attracts about one-third of iPhone owners after only a couple of years, and in a similarly competitive marketplace. Apple already combines these and other apps and services in its Apple One bundle, so it has experience and an installed base of users that could take up a combined hardware, apps, and services subscription program.”

It's unclear when Apple is aiming to introduce hardware subscriptions but you can download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.