It will be profitable for the companyThe other day, the media reported that Apple wants to introduce a subscription to its equipment, including the iPhone. Morgan Stanley's lead analyst has now revealed why the company would need to do this. Discuss =”Why Apple sells iPhones on a subscription basis” Why Apple sells iPhones on a subscription basis />
According to the analyst, this is a sign of a broad shift in Apple's business from supply to monetization of existing customer base. This will shift the company's model towards recurring sales operations.
Analyst believes the iPhone Subscription Program could have multiple rates. For example, the cheapest plan will allow you to get an outdated iPhone every 24 months, while higher plans will likely give you access to newer devices and other perks.
What are the advantages of this model for Apple, according to the analyst? He says this will help shorten equipment replacement cycles. Apple could increase the amount of money it receives per user, as well as move more customers to a direct interaction model, bypassing carriers and retailers. This move, according to the analyst, will also increase the value of Apple shares.