Apple has reportedly abandoned its plans to launch an iPhone subscription service, which would have allowed customers to receive a new iPhone every year, according to a report by Bloomberg's Mark Gurman. The service, initially announced in 2022, was expected to launch that same year but was delayed due to "software bugs and regulatory concerns."

The news comes as a surprise, given the growing trend of subscription-based services in the tech industry. The iPhone subscription service was seen as a potential game-changer for Apple, allowing customers to stay up-to-date with the latest iPhone models without the hefty upfront cost. However, it appears that the company has decided to scrap the project altogether, citing technical and regulatory issues.

This is not the first time Apple has shut down a subscription-based service. Just months ago, the company discontinued Apple Pay Later, a service that allowed customers to pay for purchases in installments. The shutdown of Apple Pay Later was seen as a setback for the company's efforts to expand its financial services offerings.

Despite the cancellation of the iPhone subscription service, Apple still offers installment plans for customers to pay for their iPhones over time. The iPhone Upgrade Program, for example, allows customers to spread the cost of a new iPhone (and AppleCare Plus) over 24 months, with the option to upgrade to a new phone after 12 months. Additionally, Apple Card holders can use Apple Card Monthly Installments to pay for Apple products, including iPhones.

The decision to abandon the iPhone subscription service raises questions about Apple's strategy in the subscription-based services market. While the company has had success with its Apple Music and Apple TV+ services, its efforts in the financial services space have been met with limited success. It remains to be seen how Apple will adapt to the changing landscape of the tech industry, where subscription-based services are becoming increasingly popular.

Industry experts are likely to be watching Apple's next move closely, as the company navigates the complex landscape of financial services and subscription-based offerings. With the cancellation of the iPhone subscription service, Apple may need to rethink its approach to stay competitive in the market.

In the meantime, customers looking for affordable ways to stay up-to-date with the latest iPhone models will have to rely on Apple's existing installment plans. While not as comprehensive as the abandoned subscription service, these plans still offer customers a way to pay for their iPhones over time.

As the tech industry continues to evolve, it will be interesting to see how Apple responds to the changing landscape. Will the company revisit its subscription-based services strategy, or will it focus on other areas of growth? Only time will tell.