Apple

Apple Gives New iPhone Buyers Free Subscriptions, Bucking Industry Trend

Apple iPhone

Buyers of Apple’s new iPhone 12, which will be available Oct. 23 in the United States for some models and in November for others, will get three free months of the company’s subscription Arcade service and one year of free Apple TV+, the company noted in a Tuesday (Oct. 13) news release otherwise focused on the company’s new suite of iPhone offerings.

The approach bucks a recent technology industry trend to move away from offering free subscriptions.

“For a limited time, eligible customers who purchase a new iPhone, iPad, iPod touch, Apple TV, or Mac can enjoy one year of Apple TV+ for free and three months of Apple Arcade for free,” the company wrote in a footnote to the news release providing details about its new suite of iPhone offerings.

A footnote in the same news release adds: “$4.99 per month each for Apple TV+ and Apple Arcade after free trial. Special offers are good for three months after the first activation of the eligible device. Apple Arcade offer begins October 22. One Apple TV+ offer and one Apple Arcade offer per Family Sharing group. Plans automatically renew until cancelled. Other restrictions and terms apply; visit apple.com/promo for more information.”

Apple TV+ and Apple Card also are sold as part of the Apple One bundled subscription offering, which the company in its marketing materials calls “the ultimate collection of Apple services for one low monthly price.”

Apple’s use of subscriptions to attract customers to services — an approach the company has used before — goes against a tech industry trend. Netflix is among companies that dropped free subscription trials. A recent PYMNTS Consumer Subscription Retail Services Report found that consumers increasingly are willing to pay for content.

Apple One includes Apple Music, Apple TV+, Apple Arcade, iCloud, Apple News+ and the upcoming Apple Fitness+, which the company says is “coming in late 2020.”

Individual and five-person Family plans, which will not include the news or fitness components, will cost $14.95 per month and $19.95 per month respectively. The Premier plan, which also will be open to five people and will include the news and fitness services, will cost $29.95 per month.

Apple, in announcing the new iPhones, said a major selling point for the new iPhones will be their adoption of the faster 5G data standard.

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