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HomeDigit NewsExpert: Apple will earn huge money on iPhone subscription sales

Expert: Apple will earn huge money on iPhone subscription sales

Analysts believe that Apple intends to reorient its business from the mass supply of new smartphones to retail to monetize the existing user base. The first rumors about the main features of the yet unannounced subscription to the gadgets of the popular brand have already appeared on the network.

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Cathy Huberty, a leading analyst at Morgan Stanley, told reporters about the new sales scheme for Apple devices. In her opinion (with reference to the company’s letter to investors), the subscription model will transfer users from one-time sales to recurring ones. The average Apple customer is expected to be willing to pay more than the current $1 average for branded devices and software.

According to rumors, the vendor may provide customers with several subscription options. For example, a budget offer will give access to a new gadget every 24 months, and for a larger amount, the user will be able to get up-to-date devices and other privileges more often. It will also allow Apple to collect detailed statistics on the consumption of branded goods and services.

The subscription model, according to the analyst, will reduce equipment replacement cycles and stimulate the development of new services. With the abandonment of retailers and intermediaries, an increasing number of users will switch to the new scheme. As a result, the transition to a regular income can significantly increase the value of Apple shares in the future. The program is expected to be linked to customers’ Apple IDs, which will be billed monthly.

“This could help Apple increase revenue and make it easier for consumers to spend thousands of dollars on new devices. Consumers will be able to upgrade their iPhones to new ones every year, once the company releases the current model,” Bloomberg notes.
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