Between Netflix, Amazon Prime and Spotify, I bet you already have too many subscriptions. Now Apple might add one more your iphone.
Bloomberg reports that Apple is working on a new payment option that would let you subscribe to your iphone rather than buying it. Of course there's a lot we don't know yet but a program like this could provide a bigger incentive to trade in your old phone rather than letting it collect dust in a drawer and that could go a long way in cutting down on e-waste. The more phones Apple gets through trade-ins the more components it has to recycle and put in new devices and depending on the price, a subscription might end up being cheaper than buying multiple Apple products.
Here's what we know so far based on Bloomberg's report. If it turns out to be true, Apple wants to let you subscribe to its hardware products just like you would subscribe to icloud, Apple music or Apple TV+. So in theory that means you'd be able to rent gadgets like iphones and ipads rather than buying them outright and unlike other monthly payment options the price wouldn't be the cost of the device split over 12 or 24 months. Instead Apple would charge a monthly fee that varies depending on the device.
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Apple has also discussed letting subscribers exchange old models for newer iphones once they launch according to the report of course. That would be great for Apple's business it could encourage people to upgrade more often at a time when people have been holding onto their phones for longer periods of time but it also means Apple would have a steady stream of old iphones coming in that it can either resell or strip down for materials and that's a big deal because Apple eventually wants to build iphones completely from recycled materials and yes there are already plenty of ways to trade in your old phone through Apple and other retailers but recycling rates aren't as high as you might think.
Just 31 percent of old iphones typically get traded in according to consumer intelligence research partners that's not bad especially considering only 10 percent of old android phones typically get traded in but there's still a lot of progress to be made and only about 20 percent of e-waste is officially reported and properly collected says a report from the World Economic Forum and the platform for accelerating the circular economy a subscription plan could make trading in your old iphone more than just an option to save money.
Trade-ins would probably be a bigger part of the whole sales experience possibly making leasing your iphone as normal as leasing a car since Bloomberg says the subscription price isn't meant to cover the entire cost of the device. There's also a chance it could be cheaper than current monthly payment options that means the subscription might make it more affordable to get your hands on multiple Apple devices that's if Bloomberg's report turns out to be true. Apple has yet to announce such a program and the Bloomberg report doesn't have all the details.
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We still don't know how much the program would cost or what happens when your subscription expires. We also don't know whether trade-ins will be a major part of the program Bloomberg only says Apple has discussed the idea regardless an iphone subscription would have to be priced just right in order to succeed. There are already tons of ways to buy new phones. Apple carriers and other retailers already offer big trade-in discounts and ways to purchase phones through monthly instalment plans. There's also Apple's own iphone upgrade program which starts at about 35 dollars per month and lets you spread out the cost of your device over time. A subscription service would have to be cheaper than those monthly payment options to really make a difference and let's be honest Apple isn't exactly known for its low prices there's also the issue of whether people are just burned out from the sheer number of services they already subscribe to.
Adding yet another one could be a tough sell. We have a lot of questions but hopefully we'll learn more from Apple later this year.
So the question is, Would you pay for your iphone through a subscription instead of buying it? Let us know in the comments and thanks for reading and stay connected for more such tech insights.
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