iPhone subscription service reportedly in pipeline for Apple

Ever since the first model was released in 2007, Apple's iPhone has become a top-tier option for consumers who are in the market for a smartphone. Until now, each new generation that comes out normally carries a prohibitive price point for most people. Yet, the demand is still somewhat strong despite the availability of competing brands. Now, the company is reportedly working on a new service that will offer ownership of its handsets via a subscription.

Buying a new iPhone outright is a costly endeavour given the premium costs. Thus, a significant number of owners regularly choose to subsidise their expenses by signing up for a plan with a cellular service provider. Since the contract normally locks them in for around 24 months, consumers can miss out on the annual hardware refresh.

Insiders are saying that Apple is now considering the suggestions of its investors on how to make ownership of its products even more appealing. A report from CNBC notes that company CEO Tim Cook appeared to support the idea when it was brought up during a conference call. He stated, "We're cognizant that there are lots of users out there that want a sort of recurring payment like that."

Sources are preemptively calling it Apple Prime, but the Cupertino-based tech outfit is yet to officially confirm anything. Industry experts speculate they might eventually market the iPhone as a subscription-based model from a transactional-type of product. Furthermore, most analysts believe that this action can potentially push stock prices up.

To recall, in 2015 the company already started to offer the smartphone through a monthly payment scheme alongside several benefits. Likewise, Apple encourages consumers to upgrade with their trade-in alternative, which ties into the manufacturer's effects to reduce pollution. It is possible for the new subscription service to include additional iCloud storage, multimedia content courtesy of Apple TV+, and more.

According to sources, the recent earnings call was all about Apple looking into new approaches to market its hardware. Moreover, the meeting allegedly touched upon the aforementioned efforts to drive sales up. Cook also discussed a new program wherein individuals who own Goldman Sachs Apple Card can purchase iPhones with waived interest fees for 24 months. In related news, the company recently launched the AirPods Pro, which features new innovative features as well as active noise cancelling.