Apple is ending plans to offer iPhones for a monthly subscription. . The company is said to be exploring a hardware subscription first but as the company's buy-now-pay-later product, seems like it ended up being very problematic.

Hardware subscriptions are rumored to work similarly to existing options or Apple Card Monthly Installments, where you pay for a new phone or other Apple device in monthly payments and, in some cases, have the option to upgrade to a new device without changing your subscription. Unlike these payment methods, which apply your payments to a lump sum loan from Citizen One or Goldman Sachs, Apple's subscription will be managed through your Apple account and will use the payment methods you're already connected to.

Apple's expectation was that if it paid directly for the iPhone, people would upgrade more often and increase the company's recurring revenue. The problem is that hardware subscriptions, like Apple Pay Later, which lets you split Apple Pay purchases into four smaller parts, may require Apple to "follow the same rules as credit card companies." Bloomberg he says. This is an additional check that the company does not want to invite.

There's also the potential strain that hardware subscriptions could strain Apple's relationship with carriers. you can buy iPhone 16 It may technically be different than a subscription from T-Mobile or Verizon, but definitely with a payment plan when you pay monthly.

Apple's hardware subscription was never officially announced, but it reflects what could be a bigger retreat from financial services headaches. Then there was Apple Pay and replaced as part of iOS 18 with access to Confirmation credits in Apple Pay. Apple Card is also said to be in limbo as Apple looks for a partner. .