Samsung Launches Subscription Model for Galaxy Smartphones Following Apple's Pause

Samsung Electronics Co. Ltd. SSNLF is preparing to roll out a subscription model for its Galaxy smartphones. This decision comes in the wake of Apple Inc. AAPL pausing its own subscription service initiatives just last month.

What Happened: The new subscription service, dubbed the AI Subscription Club, was first introduced in December for selected Samsung home appliances in South Korea. Han Jong-hee, Samsung’s vice chair, has confirmed that the service will now include Galaxy smartphones and the Ballie AI robot. The subscription service will be available in both Korea and the U.S., with Ballie being the first to launch in these markets, as reported by The Verge and ETNews.

Consumers will be able to enroll in Samsung’s subscription model that allows them to pay a monthly fee for AI-equipped devices while also providing optional repair and maintenance services. This strategy aims to make it easier for users by lowering initial costs. More detailed information about this offering will be revealed at the Galaxy Unpacked event in San Jose, California, scheduled for January 22.

Meanwhile, Apple had also been working on a similar subscription service for its iPhones, which was designed to allow customers to receive a new phone each year for a monthly fee. However, Bloomberg reported last month that this project was put on hold due to regulatory hurdles and internal challenges.

Why It Matters: The idea of hardware subscriptions is becoming increasingly popular as a way to boost revenue for tech companies. A report from 2022 indicated that Apple was looking into this model for extending their revenue streams, especially since only the most enthusiastic Apple users typically upgrade their iPhones every year. Many users have adjusted their upgrade frequency, now averaging every three years, a trend that has been declining over the past ten years.

The upcoming Galaxy Unpacked event on January 22, 2025, in San Jose is anticipated to shed more light on Samsung’s subscription plans. This event will likely showcase the new Galaxy S25 series and advancements in Galaxy AI technology, paving the way for the enhanced subscription service.

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Disclaimer: This content was partially generated with assistance and has been reviewed and published in an editorial capacity.

Samsung, Apple, subscription