03:29 PM EST, 12/18/2024 (MT Newswires) -- (Updates with details throughout and recent stock movement in final paragraph.)

Apple ( AAPL ) has stopped working on a project to build an iPhone hardware subscription service, Bloomberg reported Wednesday, citing people familiar with the matter.

Apple ( AAPL ) planned an iPhone subscription model with monthly fees and yearly upgrades, but recently ended the project and reallocated the team to other tasks, the people told Bloomberg.

This shift is part of a broader change in Apple's ( AAPL ) payment services strategy, with the Apple Pay team ending subscription and "buy now, pay later" programs earlier this year, the report said, adding that Apple ( AAPL ) is now guiding customers to third-party payment options.

Apple ( AAPL ) partnered with Affirm Holdings ( AFRM ) and Klarna Bank to provide pay-later options within its Pay service while avoiding direct regulation. While Apple ( AAPL ) could explore new partnerships to restart the iPhone subscription program, it currently has no plans to pursue it independently, Bloomberg said.

Apple ( AAPL ) did not immediately reply to a request for comment from MT Newswires.

Shares of Apple ( AAPL ) were down 1.4% in recent Wednesday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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