Samsung Electronics Co. Ltd. is poised to unveil a subscription model for its Galaxy smartphones, a significant development in the technology sector that follows Apple's recent decision to pause its own subscription service plans. The subscription service, which is dubbed the AI Subscription Club, was initially rolled out in December for select Samsung home appliances within South Korea.

Samsung’s vice chair, Han Jong-hee, confirmed this expansion during a Wednesday report, indicating that the AI Subscription Club will extend to include Galaxy phones and the Ballie AI robot. The service will first be available in South Korea and the United States, with the introduction of Ballie occurring in these regions.

The subscription model established by Samsung allows consumers to pay a monthly fee for AI-powered devices, while also offering optional repair and maintenance services. This innovative approach aims to alleviate the financial burden of upfront costs associated with purchasing new devices. The detailed framework of this initiative is expected to be unveiled during the upcoming Galaxy Unpacked event, set to take place in San Jose, California, on January 22, 2025.

In contrast, Apple hasbeen exploring a similar concept for its iPhones, intending to launch a subscription service that would enable users to access new devices for a monthly fee. However, the project was recently halted due to regulatory concerns and internal challenges, as reported by Bloomberg.

The concept of hardware subscriptions has been gaining significant traction among technology companies as a potential means to enhance revenue streams. A report from 2022 highlighted that Apple was considering this model to increase its earnings, particularly given that many consumers upgrade their iPhones less frequently than before; while the most dedicated Apple users typically upgrade annually, the average upgrade cycle has extended to about every three years over the last decade.

The impending Galaxy Unpacked event is likely to provide more comprehensive details regarding Samsung's subscription plans, with anticipation around the launch of the new Galaxy S25 series and advancements in Galaxy AI. This event may serve as a pivotal moment in shaping the future of hardware subscription services within the industry.

Source: Noah Wire Services