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While Apple prepares to launch its Apple Pay Later service, the company is also continuing to work on a hardware subscription service for iPhones. Now, however, Bloomberg reports that this so-called iPhone subscription service, just like Apple Pay Later, is suffering from technical delays.
In the latest edition of his newsletter Power On explained Bloomberg's Mark Gurman reports that Apple currently has four fintech projects in the works. Two of them, Apple Card Savings Account and Apple Pay Later, have already been publicly announced. The other two, Apple Pay Monthly Installments and an iPhone hardware subscription program, have not yet been announced. Gurman says the iPhone subscription program should launch alongside the iPhone 13 in 2021 or the iPhone 14 in 2022. However, as with Apple's other fintech projects, there have been "technical setbacks that have led to slow progress and missed deadlines." Nevertheless, the project remains in development within Apple and has not been abandoned. The hardware subscription program for iPhones will differ from other financing options for iPhone buyers because "the monthly fee would not be the price of the device divided over 12 or 24 months."
iPhone hardware subscription: Apple currently has four fintech projects in the works
Instead, it would be a "monthly fee yet to be determined, depending on which device the user chooses." Bloomberg explains that Apple's fintech services are based on a platform developed by Apple, which is "one of the most ambitious parts of Apple's financial efforts." With this platform, dubbed "Project Breakout," Apple aims to bring more of its fintech projects entirely in-house: "reviews, approvals, and transaction histories." All of these things are currently overseen by partners on Apple's behalf.
Both services remain in the works at Apple, but it's clear that the financial push has proven more difficult than expected. I believe the delays to all four initiatives are due to technical challenges as well as work on a next-generation financial system that will support them.
According to Gurman, Apple Pay Later is expected to launch "in March or April." There's no updated timeline yet for features like the Apple Card Savings Account or the yet-to-be-announced iPhone subscription or Apple Pay Monthly services. (Photo by hadrian / Bigstockphoto)
