Last week Patently Apple posted a report titled "Apple may be getting closer to introducing a new Hardware Subscription Service for iDevices & Macs that they've been kicking around for years."

Today, Consumer Intelligence Research Partners (CIRP) released analysis of the results from its research on Apple, Inc. as of December 2021. The report notes that current media reports indicate Apple plans to introduce a subscription service for iPhones, in which consumers would pay a monthly fee to use an iPhone bundled with Apple apps and services. Consumers would trade-in their phone periodically.

CIRP analyzed consumer behavior for subscription-related services, including phone purchase financing and trade-in rates, and use of Apple services and apps. Based on this analysis, CIRP finds iPhone owners use these services frequently enough that Apple has a large base of users that could adopt an iPhone subscription service.

Among these services, almost half already finance their iPhone purchase, two-thirds use paid iCloud storage, and almost half subscribe to the Apple Music streaming service.

(Click on Chart to Enlarge)

Josh Lowitz, CIRP Partner and Co-Founder: "Based on current consumer behavior, iPhone users are primed to adopt a subscription service that provides an iPhone bundled with useful apps. Almost half iPhone owners already finance their iPhone purchase, paying monthly for a new phone. And about one-third trade-in their old phone when they buy a new one. So, a significant portion of the user base is accustomed to never owning a phone, instead basically leasing it. Importantly, iPhone users also have grown accustomed to getting a new model every two or at most three years. Apple can easily match these patterns with a program that routinely sends a new phone in exchange for the old one."

Lowitz added that “Consumers will compare any subscription program to the existing ala carte offerings. The iPhone Upgrade Program, which launched in 2015, has had limited appeal, as it merely combines existing payment and trade-in options with AppleCare.

The most successful subscription services provide new or otherwise unavailable benefits. Amazon Prime delivery is distinct from other delivery options.

Costco shopping and Netflix and other streaming video services are only available with a subscription. The challenge for Apple is to create a new subscription service that provides unique value to its customers."

Mike Levin, CIRP Partner and Co-Founder: "Apple also provides critical apps on a monthly subscription. Paid iCloud storage has been around longest, and about two-thirds of iPhone owners pay its monthly fee. Apple Music is the paid streaming service that replaced iTunes, and almost half of iPhone owners subscribe in a very competitive streaming music marketplace. Apple TV+, the newer video streaming service, attracts about one-third of iPhone owners after only a couple of years, and in a similarly competitive marketplace. Apple already combines these and other apps and services in its Apple One bundle, so it has experience and an installed base of users that could take up a combined hardware, apps, and services subscription program."

The report from CIRP didn't provide any analysis on Apple offering Macs on a subscription basis.

Do you have any ideas as to what services that you'd like to see bundled in with an iPhone subscription? Send in your comments below.