Buy iPhone 14 via lease? Apple looks to help buyers get a new iPhone every year

Apple is working on an iPhone hardware subscription using which customers or users can essentially lease their device and get a new model annually, Bloomberg's Mark Gurman said.

Here is what Bloomberg's Mark Gurman said about Apple working on a subscription service for iPhone 14. (Reuters)

The Apple Far Out event is just around the corner and people are already super excited to know about the products the company will be launching. Apple is expected to launch the iPhone 14 series along with Apple Watch on September 7. Several leaks, rumors, and reports are already circulating in the market giving insights about the expected price, design, and other specifications. Now, it is being informed that Apple is working on an iPhone hardware subscription service letting users essentially lease their device and get a new model annually. It can be known that iPhone 14 is expected to arrive in stores starting September 16.

"Apple Inc. is working on an iPhone hardware subscription service that will shake up the buying process, letting users essentially lease their device and get a new model annually. As with other services of this nature, Apple's rationale for doing this is very simple: making more money," Bloomberg's Mark Gurman said.

Explaining the reason behind working on a subscription service, Gurman said, "the average iPhone user upgrades the device every three years. That's actually a less frequent rate than about a decade ago, when carriers pushed subsidies and discounts every two years. According to Counterpoint Research, the average iPhone sales price is about $825. That means Apple is generating a bit over $800 from the typical iPhone customer every three years. That's exactly why Apple is working on a subscription service."

With the help of the subscription service Apple will be able generate more money per consumer. While the customers will be benefited too as they will not have to shell out hundreds of dollars upfront for a new iPhone. And of course, they can also get the latest model every year instead of waiting for a reason to switch the phone in a few years.

Coming to the iPhone 14 price tag, the phone is expected to cost less compared to iPhone 13 when it was launched in 2021. According to a report by TrendForce, a market research firm, Apple may consider launching the iPhone 14 series with a starting range of around Rs. 60,000. The price of the standard iPhone 14 may start from $749 (roughly 60,000), which is lower than what the iPhone 13 was launched at ($799).

The report suggests that the iPhone 14 can come with a price tag of $749, the cost can later go up to $799. The iPhone 14 Max can come with a starting price of $849 (roughly Rs. 68,000) which can later go up to $899. The iPhone 14 Pro price may start at $1,049 (roughly Rs. 83,000) and can hike to $1,099. While the iPhone 14 Pro Max can come at a starting price of $1,149 (roughly Rs. 91,000) which can later increase to $1,199.