While the project was still in development, it was overseen by the Apple Pay group. The latter team earlier this year also closed an in-house “buy now, pay later” service that allowed shoppers to pay off purchases over several months. But now Apple is directing shoppers to use third-party installment plans instead.
Apple already has an Upgrade Program that allows subscribers to get a new iPhone every year. | Image credit-Apple
The subscription service would have been handled in-house by Apple and the loans provided to buy iPhones would have been floated by the company. Testing it out earlier this year, Apple allowed members of its Apple Pay team to try it along with those working on App Store billing and Apple’s online store. Apple already runs the iPhone Upgrade Program which divides the cost of an iPhone over two years. After making 12 monthly payments, subscribers can trade in their current iPhone for a new model.
Considering that the iPhone is Apple’s most important product accounting for over half of the company’s annual revenue, the tech giant hoped the subscription plan would increase sales of the device which would generate additional recurring monthly revenue. Increasing iPhone sales would lead to increasing purchases of Apple Services. With development of the iPhone subscription plan halted, Apple might start increasing how often it promotes the iPhone Upgrade Program.
