While Apple prepares the launch of its Apple Pay Later service, those of Cupertino also is still working on a hardware subscription service for the iPhone. Bloomberg reports today, however, that like Apple Pay Later, this iPhone subscription service also is experiencing delays from the engineering side.
In the latest issue of his Power On newsletter, Mark Gurman, at Bloomberg, explains that Apple is working on four financial projects. Two of them, Apple Card Savings Account and Apple Pay Laterhave been publicly announced. The other two have not been announced, Apple Pay Monthly Installments and an iPhone hardware subscription program.
Gurman has already predicted that the iPhone subscription program would launch alongside the iPhone 13 in 2021 or iPhone 14 in 2022. However, like other Apple fintech projects, it has suffered “engineering and technical setbacks that have caused a slow progress and missed deadlines.” Even so, andThe project is still underway within Apple and has not been scrapped.
The iPhone Hardware Subscription Program will differ from other financing options for iPhone buyers because “The monthly charge would not be the price of the device divided into 12 or 24 months.” Instead, it would be a “yet to be determined monthly fee that depends on the device the user chooses.” According to these data, what is expected is that the monthly payment of the subscription should be less than the payment fee of a financed device, Otherwise, it would be meaninglessor could include Apple Care+, replacement devices, and other services that regular financing would not).
Bloomberg explains that Apple’s fintech services are based on an underlying platform, created by Apple, which is “one of the most ambitious parts of Apple’s financial efforts.” Dubbed “Project Breakout,” this platform is the one Apple will use to move more of its fintech projects entirely in-house: “checks, approvals, and transaction histories.” All of these things are currently overseen on Apple’s behalf by third parties.
Both services are still running at Apple, but it is clear that the financial push has proved more difficult than expected. I believe that the delays in all four initiatives are due to engineering issues, as well as work on a next-generation financial system that will support them.
Apple Pay Later is expected to launch sometime in “March or April,” according to Gurman. There’s no word on any definite dates for things like the Apple Card savings account or iPhone subscription services or Apple Pay Monthly.. We will remain pending.