Apple is no longer planning to create a "hardware subscription service" to make it as easy as possible to get a new iPhone every year. Bloomberg reports that the goal was "to make owning an iPhone like subscribing to an app," but the project was "recently wound down."

The program was initially supposed to launch at the end of 2022 but was delayed until 2023 and beyond. The project reportedly suffered setbacks due to software problems and regulatory concerns.

It would work like this: Instead of paying for an iPhone outright or signing up for an installment plan, customers would have a monthly fee billed to the same Apple account they use for downloading apps and subscribing to services. They'd then be able to swap out their iPhone for a new model each year.

Like the now-defunct Apple Pay Later program, the hardware subscription would use an in-house financial infrastructure and be based on loans provided by the company itself. Early this year, Apple deployed the iPhone subscription service as a test for employees within its Pay group. Teams working on App Store billing and the online store were also involved.

The move to shut down this iPhone subscription service project comes the same year Apple discontinued its Apple Pay Later program. Apple Pay Later allowed customers to finance any purchase made with Apple Pay in four equal payments across six weeks without any fees or interest. In iOS 18, Apple added support for third-party financing to Apple Pay from partners like Affirm and Klarna.

Apple also offers the iPhone Upgrade Program, which is backed by Citizens Bank and splits iPhone purchases into installments across two years, with the option to upgrade after one year. You can also finance iPhone purchases with Apple Card Monthly Installments.