Home > Latest News > Apple Set Copy Samsung’s Subscription Model, Is It A Threat For Retailers?

Apple Set Copy Samsung’s Subscription Model, Is It A Threat For Retailers?

A new threat is facing CE retailers and carriers this morning, after it was revealed that Apple is looking at a direct sell subscription model for iPhones and MAC hardware, similar to what Samsung is already selling.

Apple bring in billions at carriers and retail stores around the world and while retailers don’t make a lot of margins selling Apple products, they do bring in foot traffic.

Currently Apple sells A$250 billion dollars’ worth of iPhones which is half the company’s revenue.

The big question now is whether Apple will allow retailers and carriers to sell a subscription package.

The service is Apple’s biggest push yet into automatically recurring sales.

The big question is whether a retailer gets a commission from the second sale of an Apple device when a recurring sale is activated or whether Apple will simply ship a product directly.

Apple shares climbed when the news broke overnight gaining as much as 1.6% to $172.87. The stock had been down 4.1% this year.

Retailers currently sell an Apple Music Card however most music revenue at Apple is generated directly and not via a third party.

Apple believe that they can make the process of buying an iPhone or iPad on par with paying for Apple TV content, iCloud storage or an Apple Music subscription with a monthly fee being debited against a bank account or credit card.

Blomberg claims that Apple is planning to let customers subscribe to hardware with the same Apple ID and App Store account they use to buy apps and subscribe to services today.

Instead of the price of the hardware determining a sale the new way to purchase will be the cost of a monthly subscription.

Apple will also allow users to swap out their devices for new models when fresh hardware comes out.

According to sources Apple has been working on the subscription program ever since Samsung initiated their subscription model that can be found on the Samsung Australia web site.

Currently Apple is running a “buy now, pay later” service with the new service tipped to be launched to coincide with the launch in September of new Apple iPhones.

The company has had preliminary discussions internally about attaching the hardware subscription program to its Apple One bundles and AppleCare technical support plans.

A subscription would likely be managed through a user’s Apple account on their devices, and via the App Store and on the company’s website.

Bloomberg claims It would likely also be an option at checkout on Apple’s online store and at its physical retail locations.

Apple accounts are typically tied to a user’s credit or debit card.

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