- Apple Inc (NASDAQ:AAPL) is working on a subscription service for the iPhone and other hardware products, Bloomberg reports.
- Apple's move could make device ownership similar to paying a monthly app fee similar to Peloton Interactive Inc (NASDAQ:PTON).
- A Bernstein analyst pitched the idea in 2016, saying that it could help Apple get to a $1 trillion market valuation.
- Apple looked to make the process of buying an iPhone or iPad on par with the monthly subscription for iCloud storage or an Apple Music.
- Apple aims to let customers subscribe to hardware with the same Apple ID and App Store account they used to buy apps and subscribe to services.
- Apple also discussed allowing users to swap out their devices for new models.
- The iPhone giant is considering attaching the hardware subscription program to its Apple One bundles and AppleCare technical support plans managed through a user's Apple account on their devices via App Store with online and offline checkout options, Bloomberg notes.
- The service would mark Apple's major push into automatically recurring sales, allowing users to subscribe to hardware for the first time instead of just digital services.
- According to Bloomberg, iPhone is Apple's most significant source of sales, raking over 50% of the company's revenue in 2021.
- Price Action: AAPL shares traded lower by 0.02% at $174.03 in the premarket on the last check Friday.
