Apple was recently rumored to be working on a subscription model for its products. The Cupertino-based giant is said to offer iPhones and other Apple products on a monthly subscription model that will let users pay a monthly fee every year to get their hands on the latest iPhone models. A report now estimates how much money Apple could make from its subscription service compared to users buying the new model. Bloomberg’s Mark Gurman shares estimates in his latest Power On newsletter, saying that Apple could make a few hundred dollars more than the upfront price of an iPhone a customer paid for in a three-year period. Apple is also projected to earn more than the average selling price of an iPhone with its rumored subscription model.
with Apple subscription to iPhoneCustomers will not have to pay huge amount while upgrading their smartphone. Gurman’s report estimates that Apple may charge $1,260 (about Rs 95,100) per month to $35 per month (about Rs 2,600) above the average selling price for the iPhone. iphone 13, which costs $799 (approximately Rs 60,300). The report said this amount is calculated for a period of three years, which is the average time it takes a user in the United States to upgrade their phone.
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Similarly, Gurman also calculated that Apple may charge a monthly fee of $45 (about Rs 3,400) for the iPhone 13 Pro. Here, Apple estimates that it will earn $1,620 (approximately Rs 1,22,200) against the iPhone 13 Pro’s sticker price of $999 (approximately Rs 75,400). Lastly, Gurman said Apple can earn up to $1,800 (about Rs 1,35,800) on a monthly fee of $50 (about Rs 3,800) for three years with the iPhone 13 Pro Max. The price of iPhone 13 Pro Max is $ 1,099 (about Rs 82,900).
The report also noted that despite a more than 40 percent margin in the iPhone, Apple will also benefit from the iPhones that users will return, as the company can refurbish and resell them. According to Gurman’s report, a customer who sticks to the subscription model for 10 years can earn $4,000 (approximately Rs 3,02,000) on the lowest iPhone tier.
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Apple’s iPhones also support software updates for more than five years, which means customers will stick to the phone for a long time. There are also some who upgrade their iPhone every year, which can be a costly affair. A subscription model would benefit both, customers who want to upgrade to a new iPhone every year, and Apple because people are expected to be locked into the subscription service for a long time.
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