Apple may revive its hardware subscription service idea — and tariffs might be the reason why. But let us explain.
Amid rising international tariffs and growing pressure on its global supply chain, word is Apple may be reconsidering a plan it once put on ice: a hardware subscription service. Originally rumored in 2022, this plan would have let customers pay a flat monthly fee to access the latest iPhone and possibly other Apple hardware, effectively bundling devices with Apple’s growing suite of services. Now, with the cost of production rising and iPhone prices possibly inching upward in the U.S., this idea is suddenly back on the table.
In his latest Power On newsletter, Bloomberg’s Mark Gurman says Apple is exploring ways to soften the impact of potential price hikes caused by a new wave of import tariffs. Beyond the usual trade-in deals and installment plans, a subscription-style model is reportedly being considered again — and it might make more sense now than it did a couple of years ago.
So what would be an Apple’s hardware subscription plan exactly?
It would likely be an upgrade on top of the iPhone Upgrade Program. Instead of financing just the cost of the device, users would pay a monthly fee that includes access to new hardware, AppleCare+ protection, and possibly services like iCloud+ and Apple Music, all under one predictable cost. At the end of the subscription term, users would either return the device, upgrade, or renew.
Apple already has a software subscription service called Apple One. | Image credit — Apple
It’s a different model from installment plans because it shifts the dynamic from ownership to access — similar to how Apple One bundles services or how Netflix gives you access without needing to own media. For Apple, this model could help retain users in the ecosystem for longer while keeping the upgrade cycle predictable.
When rumors of the service first emerged in 2022, the idea seemed like a natural evolution of Apple’s services push, especially with Apple Card and iPhone Upgrade Program already laying the foundation. But for reasons never officially disclosed, the service didn’t launch. Now, faced with the possibility of pushing iPhone prices above the $999 mark — something Apple has avoided for seven years — a subscription could be Apple’s way to avoid the sticker shock.
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There’s also a strategic edge to this move. By switching customers to a recurring payment model, Apple would stabilize revenue while making higher-cost devices more accessible without traditional financing. And it aligns neatly with a world where people are already used to subscribing to everything from software to food deliveries.
If this sounds a lot like what carriers used to offer, you’re not wrong. But Apple would control the relationship, the hardware, the services, and the support — a full ecosystem experience, locked down monthly.
How likely is this to happen?
This, of course, isn't information that has been confirmed or even discussed by Apple publicly, but it’s worth noting that back in 2023, Apple registered trademarks and backend infrastructure that would support a hardware-as-a-service model. In light of current economic pressures, this could be the moment Apple reactivates the plan.
Should Apple move forward, Gurman says we should expect the service to roll out alongside a new product cycle — possibly with the iPhone 17 later this year. And given how tightly Apple integrates hardware and services, it might not stop with iPhones. iPads, Macs, and even Apple Watches could eventually be part of the bundle.
This wouldn’t be Apple’s first experiment with shifting customer behavior around hardware access — but it could be the most permanent one yet. This could definitely make for a more feasible option for consumers to deal with higher iPhone prices if the goal is to upgrade to a new iPhone every year. However, how many subscriptions can one person take on before it becomes too much? That is also another factor to consider.
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Johanna 'Jojo the Techie' is a skilled mobile technology expert with over 15 years of hands-on experience, specializing in the Google ecosystem and Pixel devices. Known for her user-friendly approach, she leverages her vast tech support background to provide accessible and insightful coverage on latest technology trends. As a recognized thought leader and former member of #TeamPixel, Johanna ensures she stays at the forefront of Google services and products, making her a reliable source for all things Pixel and ChromeOS.
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