Apple: Subscriptions Aren't New

Mar. 28, 2022 11:17 PM ETApple Inc. (AAPL)70 Comments


  • Apple is reportedly working on a new hardware subscription of the iPhone and other products.
  • A lot of consumers already take advantage of monthly payment plans for iPhones, questioning the potential success of a monthly subscription.
  • The stock remains extremely expensive at 28x FY22 EPS targets.
  • Looking for a helping hand in the market? Members of Out Fox The Street get exclusive ideas and guidance to navigate any climate. Learn More »

Newly released iphone 12 white color mockup set with different angles

yalcinsonat1/iStock Editorial via Getty Images

Apple (NASDAQ:AAPL) ended last week on a high as the market once again extrapolated a new product offering too far. The latest report has the tech giant working on a subscription

Verizon Communications (<a href='' title='Verizon Communications Inc.'>VZ</a>) offering $800 off a second phone plus the costs to move from another carrier.

Source: Verizon

new Mac Studio offered to consumers via 12-month installment payments of either $150 for the lower end product and $300 for the higher end product.


A 9to5Mac poll from earlier this year suggests that only 52% of consumers upgrade an iPhone within 2 years.

Source: 9to5Mac

research by BlinkAI about a year ago found that 34% of iPhone users plan on keeping their iPhone beyond 3 years before upgrading.

Source: 9to5Mac

Earnings Estimates page - Apple will struggle to generate even 5% revenue growth annually over the next 3-year period

Source: SA Earnings estimates

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Stone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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