Apple has scrapped its planned iPhone hardware subscription program, according to a report by Bloomberg. The service was intended to allow consumers to pay a monthly fee for an iPhone with the option to upgrade to a new model each year. However, development of the program was plagued by software bugs and regulatory concerns.
The idea behind the program was to make high-end gadgets more affordable for consumers while generating additional revenue for Apple. The project was being worked on by the company’s Apple Pay group, which had previously shut down its buy-now, pay-later offering due to stricter regulations.
Instead of pursuing the subscription program, Apple now promotes third-party pay-over-time lending products offered by companies like Affirm and Klarna. The company has also been focusing on integrating artificial intelligence (AI) into its devices, including a recent partnership with OpenAI’s ChatGPT for Siri voice assistant users in countries where AI is not restricted.
However, Apple’s efforts to add AI capabilities to its smartphones in China have been hindered by regulatory requirements that require generative AI operators to obtain government approval before rolling out products. As a result, the company’s smartphone sales in China have declined, with Huawei experiencing significant gains due to its own AI-powered phone offerings.
Despite this setback, Apple remains committed to its AI goals, and industry experts believe that the integration of ChatGPT could transform how people shop and interact with technology.
Source: https://www.pymnts.com/apple/2024/report-apple-stops-development-of-iphone-hardware-subscription-program