Apple Could Expand iPhone Upgrade Program to Cover Software and Hardware Services

Many analysts believe that Apple could soon offer a bundle. They claim that that the tech giant manufacturer could soon combine its software and hardware services in just one package.

Loup Ventures analysts suggested that Apple's new project could give better options for consumers to get its products, including iPad, Mac, and Apple Watch through a hardware subscription.

As of the moment, Apple's iPhone Upgrade Program allows consumers to pay a monthly subscription fee to possess a current-gen model of smartphones. It also allows the subscribers to update their devices to the latest models every year.

How Apple's new move would work

David Stokman and Gene Muster, analysts from Loup Ventures, explained that Apple could expand its subscription program to cover other hardware and software services, such as Apple One.

"Apple has a history of perfecting a playbook and then reapplying it to new parts of its business," said the analysts via Apple Insider.

The company's new move would rely on macro trends of an ongoing digital transformation. It would also change consumer buying preferences.

Loup Ventures analysts also believe that Apple is the only one that can execute this move properly or the only one who can do it. The expanded subscription would be really beneficial for Apple since it could increase the company's generated revenue from around 55% up to 85%.

Will Samsung and Google expand subscription programs?

According to Loup Ventures, Apple's rivals, Google and Samsung, would have difficulty expanding their subscription programs. First, Google's devices decline in value at a faster rate compared to Apple devices.

This negative output lessens the financial strength of the hardware subscription wheel. In Samsung's case, the product line lacks integration between its software and hardware services. Its trade-in offers are also in line with those of Apple.

Unlike these two companies, Apple's tightly integrated ecosystem gives a better user experience and helps many Apple users maintain their loyalty to Apple.

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Written by: Giuliano de Leon.