The subscription iPhone is expected to cost a lot more than an out-of-the-box purchase

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The subscription iPhone is expected to cost a lot more

Apple would be working on an offer to buy iPhone by subscription. This offer, which is similar to the leasingwould include the terminal, but also other services, such as the Apple Care guarantee and possibly Apple One (Apple Music, Apple TV +, Apple Arcade, iCloud+ and Apple Fitness+).

Mark Gurman, the usually very knowledgeable Bloomberg reporter, tried to calculate how much this offer might cost. For this, he was inspired by the prices of the iPhone update program, which allows you to benefit from a new iPhone every year, as well as the AppleCare + guarantee. The prices for this program are as follows:

  • iPhone 13 mini : from 35.33 dollars per month.
  • iPhone 13 : from $39.50 per month.
  • iPhone 13 Pro : from $49.91 per month.
  • iPhone 13 Pro Max : from $54.08 per month.

Gurman chose slightly lower prices and considered a calculation over 3 years, which is the average time for users to replace an iPhone, except in the event of a major problem (lack of storage, overpriced repair, terminal too old for the new version of iOS). It arrives at the following results:

  • iPhone 13 at $35 per month = $1260 over three years.
  • iPhone 13 Pro at $45 per month = $1620 over three years.
  • iPhone 13 Pro Max at $50 a month = $1800 over three years.

This represents a significant difference compared to Apple’s official prices:

  • iPhone 13 : 799 dollars (the subscription is 57% more expensive).
  • iPhone 13 Pro : 999 dollars (subscription is 62% more expensive).
  • iPhone 13 Pro Max : 1099 dollars (subscription is 63% more expensive).

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Of course, it will be necessary to wait for the final tariffs and the announcement of the additional tariffs to know exactly what the customer gains there, apart from the replacement of his iPhone every year.

Taking into account the price of Apple One ($14.95 per month), we arrive at the following results over three years for a direct purchase:

  • iPhone 13 : 799 dollars + 538 dollars = 1337 dollars.
  • iPhone 13 Pro : 999 dollars + 538 dollars = 1537 dollars.
  • iPhone 13 Pro Max : 1099 dollars + 538 dollars = 1637 dollars.

The differences with the subscription are then much lower, with even an advantage for the case of the iPhone 13.

Either way, it should be a major source of revenue for Apple. Assuming $35 per month, that would be over $4,000 per user over ten years. In addition, the manufacturer will be able to recover old iPhones and resell them on the refurbished smartphone market.

Source : Bloomberg

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