Apple's plans for a hardware subscription model, similar to existing payment options, have been shelved due to regulatory challenges and potential impacts on carrier relationships.
Bloomberg reports that the complications with Apple's subscription model are similar to their 'buy now, pay later' offering, which ultimately faced too many regulatory hurdles.
Apple's expectation was that fronting the cost of an iPhone would encourage more frequent upgrades, thereby increasing their recurring revenue stream.
The company appears to be downsizing its ambitions in financial services, as seen with the discontinuation of Apple Pay Later and current uncertainty surrounding the Apple Card.
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