IPhone Sub Program Would Likely Be Appealing to Customers, Says CIRP

IPhone owners use Apple services enough to make an iPhone subscription for a phone and apps an appealing option, said Consumer Intelligence Research Partners Monday, referring to a rumored Apple subscription offering. Almost half of iPhone users finance their iPhone purchase, two-thirds use paid iCloud storage and about half subscribe to Apple Music, said the research firm. Under the rumored offering, consumers would trade in their phone periodically, CIRP said. About a third trade already 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,” and iPhone users have gotten used to getting a new model every two or three years, it said. Apple can easily match these patterns with a program that routinely sends a new phone in exchange for the old one,” said analyst Josh Lowitz. About two-thirds of iPhone owners pay monthly for iCloud storage, the longest-running iPhone service, and almost half subscribe to Apple Music “in a very competitive marketplace,” said analyst Mike Levin. Apple already combines these and other apps and services in the 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,” Levin said. Apple didn't comment Monday. Comparing an Apple subscription service with other successful services, the analysts said Amazon Prime is distinct from other delivery options, and other services -- Costco for shopping and Netflix for streaming -- are available exclusively by subscription. “The challenge for Apple is to create a new subscription service that provides unique value to its customers," the analysts said. Findings are based on a survey of U.S. Apple customers who bought an iPhone, iPad, Mac computer or Apple Watch as of December.