Just how far is Apple prepared to go in its transformation from product manufacturer to service supplier?
Comments by Tim Cook during an interview suggest Apple is considering launching a subscription service for its smartphones, a move that would be a fundamental step in the transition from consumer product to service, as well as providing a steady revenue stream, and perhaps changing our relationship with hardware in the consumer electronics markets.
The idea is simple and makes sense: offer iPhones under a de facto leasing system, whereby in exchange for a monthly payment, devices are exchanged for new models. Such a system already exists in the business world, where company rent their computers, replacing them regularly with more powerful machines, were it to take off in the consumer sector could see greater homogeneity, as well as helping with recycling and reusing materials, which would greatly enhance Apple’s green credentials.
For consumers, this is undoubtedly the best way to keep our smartphones permanently updated, as well as accessing the latest models. For Apple, the approach would likely translate into greater customer loyalty. Throw the added value of Apple’s commitment to privacy into the mix, and the idea could definitely appeal to a substantial number of people.
