Apple to Roll out Hardware Rental Service Directly with End

理财鱼小提示：Apple to Roll out Hardware Rental Service Directly with End Users

Image Source: Visual China

BEIJING, March 25 (TMTPOST) — Multinational tech giant Apple is planning to roll out a hardware rental service that will allow consumers to rent iPhones and other Apple devices on a monthly basis, Bloomberg reported, citing sources familiar with the matter.

Consumers will pay a rental fee every month to use iPhones and iPads, according to the news report by Bloomberg. It is reported that Apple plans to roll out this service for its new iPhone model this year.

At present, Apple allows consumers to purchase its devices in installments through its Apple Card service. The company has also rolled out the iPhone Upgrade Program that allows consumers to upgrade to a new iPhone once consumers have made 12 payments.

Apple is currently working on a plan for the hardware rental service, which might be connected to Apple One and Apple Care. Consumers will pay a fixed fee every month and then will be granted access to the latest iPhones and iPads, while enjoying added-value services such as Apple One, more iCloud storage, Apple Music and AppleTV+.

A hardware rental service will mark a major strategic change for Apple, a company that primarily sells its products at full price. Apple would sometimes promote its products with installment plans and telecom operator subsidies. The hardware rental service might help Apple generate more revenues and appeal to consumers.

Apple’s sales volume mainly comes from its iPhone line, which generated nearly revenues of US$192 billion last year, accounting for over 50% of the total revenues.

Apple has not commented on the news report.

The logic behind the hardware rental service is similar to the subion model of Apple Music. Apple plans to let users use their Apple ID and App Store account to manage the devices they have rented.

Sources said that the rental service might be launched as early as in late 2022.

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