The Apple Device Rental service is slow to appear. Apple’s desire to go the extra mile may explain this delay.
Apple reported almost $20.8 billion in revenue from its services alone last quarter, and once again, it gives a clear indication that non-hardware products are better at weathering market shocks and supply chains than top-selling devices like the iPhone and Mac. Therefore, it is not surprising that the company has clearly accelerated the provision of services in recent quarters, in particular by implementing Apple Pay Later and preparing others. Among those in development is a subscription service that will allow customers to rent iPhones as they pay monthly for services like Netflix.
Apple device rental service is slow to emerge
The service was reported by Bloomberg last March, but technical difficulties seem to explain why a launch is still on the agenda. In the latest version of his PowerOn newsletter, journalist Mark Gurman blames the delay in launching the equipment rental service on “engineering problems.”This service will allow devices to be sold with other value-added services such as Apple One or Apple Care.
Mark Gurman says “engineering and technical failures that slowed progress and pushed the timeline”says the product is still in development, but its future is directly tied to Apple’s other fintech ambitions. Indeed, among the financial services not yet formalized, we would find monthly Apple Pay payments, which would just allow the Cupertino company to charge interest by offering an enhanced version of its Pay Later service. All of this will be part of a larger Breakthrough project aimed at further developing financial services, in particular by developing its own system of credit checks using credit approvals and bonuses.
Apple’s willingness to do everything may explain this delay.
So far, all these responsibilities are taken over by Apple’s partner banks, but the Apple brand would like to do everything itself. And it will take longer than originally planned. If all this information is correct, this device rental service will be available in different ways depending on the selected device. In any case, such a service would allow more people who have tried expensive Apple products for a small fee to open doors to new customers, analysts say. From a purely business standpoint, this also makes a lot of sense. Apple can use this service as a showcase for new and current generation iPhones at different prices while making money offering refurbished devices through this rental service.