HIGHLIGHTS
- Apple is reported to be developing a hardware subscription service.
- The average selling price of an iPhone is $825. (roughly Rs. 62,300)
- Apple has not made any public announcements about the debut of such a service.
Apple is said to be working on a hardware subscription service that would allow consumers to pay a monthly membership fee in order to obtain access to the latest iPhone model every year. According to a new study, the corporation might earn even more money than when people buy a new update for their old iPhone model. Meanwhile, buyers would not have to pay a big sum of money up front for a new iPhone while always upgrading to the most recent model.
While Apple has yet to announce any plans for a monthly subscription service for its iPhones, Bloomberg's Mark Gurman has given projections of how much money Apple may make from its rumoured monthly subscription service in his weekly Power On email. With its rumoured subscription service, Apple could purportedly make a few hundred dollars more than the upfront purchase of a smartphone paid by a client over a three-year period — and more than the average selling price of a new iPhone.
Apple's most current iPhone models have sophisticated hardware and are maintained by software upgrades for more than five years, implying that the average consumer keeps their iPhone for a longer period of time. Some smartphone users, on the other hand, switch to the latest model every year, which may be a costly event. According to Counterpoint Research, the average selling price of an iPhone is $825. (roughly Rs. 62,300).
The research predicts that Apple could make more than the average selling price for an iPhone — $1,260 (approximately Rs. 95,100) — by charging $35 (about Rs. 2,700) each month for an iPhone 13 priced at $799. (roughly Rs. 60,300). According to Gurman, the sum is computed over a three-year period, which is the typical time a user in the United States waits to update their iPhone.
Meanwhile, Apple could earn $1,620 (about Rs. 1,22,200) over three years by charging $45 (approximately Rs. 3,400) each month for the $999 iPhone 13 Pro (roughly Rs. 75,400). Finally, the corporation might make $1,800 (about Rs. 1,35,800) with a monthly subscription cost of $50 (approximately Rs. 3,800) for the $1,099 iPhone 13 Pro Max (roughly Rs. 82,900).
According to the study, Apple earns more than 40% margins on iPhone hardware and may benefit from people returning obsolete phones, which might be reconditioned and resold. According to Gurman, a client who stays in the programme for ten years might earn $4,000 (about Rs. 3,02,000) in income on the lowest iPhone tier. Meanwhile, users will benefit from not having to pay a huge sum of money up front every time a new iPhone model is released.
