Apple has reportedly stopped its development of an iPhone hardware subscription program.
The company had planned to launch the program in 2022, delayed it until 2023, and has now scrapped it, Bloomberg reported Wednesday (Dec. 18), citing unnamed sources.
Apple did not immediately reply to PYMNTS’ request for comment.
The company had planned to launch a service in which consumers would pay a monthly fee for an iPhone and get a new model of the device each year, according to the report.
During development, the program ran into software bugs and concerns about potential regulatory scrutiny, per the report.
It was reported in March 2022 that Apple was developing the hardware subscription service to generate more revenue and make it easier for people to afford pricey new gadgets.
The hardware subscription program was being developed by the company’s Apple Pay group, which shut down its buy now, pay later (BNPL) offering, Pay Later, earlier this year because of stricter regulations announced by the Consumer Financial Protection Bureau, according to the Wednesday report by Bloomberg.
Apple now promotes third-party BNPL programs offered by Affirm and Klarna, per the report.
The company shuttered Pay Later in June — nearly two years after its initial announcement and about eight months after its nationwide debut — and began charting a wider path toward offering a range of pay-over-time lending products.
A week before that announcement, Apple said that Apple Pay users in the United States will be able to apply for BNPL loans through Affirm during checkout.
It was reported Sunday (Dec. 15) that Apple plans to debut a new iPhone next year that will be thinner than current models, will have a simplified camera to cut costs, and will be designed to serve as an alternative for consumers who want a sleek-looking phone and are OK with not having all the features offered in Pro models.
Apple is also planning two foldable devices, including one that would double as a laptop and a smaller one that would be a foldable phone, the Wall Street Journal (WSJ) reported. Both foldable devices have been in the works for years.
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