Apple Inc. ‘s iPad, iPhone, iMac and other products are expensive. Still, when buyers consider what they are getting for their money, they find a way to pay for them. If Apple could eliminate that high price barrier and still get their hardware into the hands of consumers, that would be pretty great, right?
There’s a lot of chatter right now about how the iPhone maker could switch over to a “pay-to-use” model for hardware. A reasonable monthly fee would be a lot easier for many to fit into their budgets but how practical would it be for Apple Inc. ?
Given the relationship between the nature of entertainment, profitable productivity and Apple equipment, it may be quite practical.
How this model helps consumers and Apple?
CCS Insights predicts that the iPhone maker will introduce a combined subscription model for its services and hardware in 2018. “The concept of ‘Apple as a service’ builds on the success of Apple’s iPhone Upgrade Program,” the analysts note.
So, although you should be able to purchase an iPhone 8 in 2017, that iPhone 9 (if there is one) may only be available as a rental. It’s possible!
The notion appears solid: the subscriber can pay a monthly fee to get the services and hardware they want to enjoy. If you are using the iPhone Upgrade scheme and Apple Music, then you already are using the concept, says Computer World.
For the tech giant, this is a good move as its hardware is highly recyclable, and it already operates a take back scheme in several major markets, “and those components maintain value, so the impact on the company’s bottom line could be a positive,” says Computer World.
In addition, it would make revenues of the iPhone maker far less reliant on product release cycles and would give the tech giant repeated, predictable and consistent income. It will also allow the middle-class consumers to access Apple Inc. products even when the population faces a large drop in disposable cash and income in several key markets, like the UK.
More predictions about Apple
CCS also predicts that the tech giant will extend its services and apps to other platforms by 2018, and will launch hardware and a mixed reality platform by 2017. Also, the analysts predict that the smartphone maker will engage in a bidding war to buy CityMapper. Also, the analysts speculate that from next year, the iPhone maker will probably start making large investments in rights to broadcast sports content.
We do not expect that the tech giant will do all the given things. But, all these predictions have some advantage, and could benefit a company trying to build a new future.
Apple Inc. has as much right as any other company to leave its legacy of being a hardware maker behind and step into something new. Every part of life will be affected by the disruptive impact of digital transformation, and not one business model or company will be left unchanged. Transformation is important for all, be it a startup or a tech giant. The entire history of the iPhone maker has been based on allowing such digital transformation, from the iPhone to Mac to Apple Watch to iPad and more.