Apple Growing Subscription Model... This Time with Enterprise Device Management Service

[Asia Economy Reporter Jeong Hyunjin] Apple, the iPhone manufacturer, is expanding its subscription model that provides services for a fixed monthly fee, and is now offering a device management service for small businesses.

On the 31st (local time), Apple announced the launch of a subscription service called "Business Essentials," which allows companies to set up and manage employees' devices such as iPhones, iPads, and Mac desktop and laptop PCs, as well as install software. The cost ranges from $2.99 to $24.99 per employee per month (approximately 3,600 to 30,000 KRW). Apple explained that this product is targeted at small businesses and enterprises with fewer than 500 employees that do not have a dedicated IT department.

This service enables system administrators to install work-related applications (apps), track or disable lost devices, and sync them with the cloud. Choosing a more expensive plan also provides "AppleCare" credits, which can be used to repair or replace devices when they break down.

Apple, which was originally a company manufacturing hardware products such as iPhones and Macs, has recently been expanding its subscription services. Bloomberg reported that Apple is preparing to offer iPhone devices as a subscription service. CNBC noted that subscription services generate stable and predictable revenue through recurring monthly fees, which is why investors are showing greater interest in service businesses rather than hardware, which experiences significant seasonal fluctuations.

Apple typically records its highest sales in the fourth quarter, right after the release of new iPhone models, followed by a gradual decline throughout the year. However, as Apple has expanded its service businesses such as Apple Music and Apple TV+, its service revenue grew by 27% last year to $68.4 billion.