Apple Weighs Hardware Subscription For iPhones

Apple Inc 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 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.