Apple investors speculated for years that Apple could sell equipment, such as the iPhone, by subscription.
This has been a hot topic of conversation among analysts as investors tend to assess the predictability of recurring revenue.
According to the iPhone subscription argument, that some people call Apple Prime after the Amazon program of the same name, Apple would associate hardware updates with services such as iCloud storage or Apple TV + content and hardware for a fee. single monthly fee. This would allow you to turn iPhone sales from a transactional model into a subscription model, which could increase the price of the stock without having to significantly increase sales or product prices.
Cook went on to say, using bullish language, that Apple sees it as an important growth sector.
“My point of view is that it will develop in the future for a greater number. It will grow disproportionately, “he continued.
As Apple usually does, it has been advertising smaller programs and services for years, laying the groundwork for a broader movement in this area.
In 2015, Apple began allowing users to pay for the iPhone every month rather than all at the same time, offering warranty and updates as part of the deal. The iPhone update program includes Apple’s AppleCare warranty and updated hardware. Users can upgrade to the new iPhone after 12 months of payment.
While other branded credit card stores in the past offered interest-free financing for large purchases, Apple’s move immediately led to the formula that has been widely talked about for so long. “Slowly, but surely, back on those” Apple Prime “offers …”, Mr.G. Siegler of Alphabet’s GV tweeted about the news.
In case that would not be obvious, Cook also drew attention to the funding.
Apple did not launch Apple Prime on Wednesday, but Cook made it clear that there are many people who already want the latest and best iPhone and are willing to pay for the privilege every month.
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