Apple is offering Apple Card consumers an additional advantage with the launch of 24-month, interest-free financing on iPhone buyouts. It declared the decision on its earnings call. Together with the 3% cashback Apple Card provides on buyouts from the firm, it may appear a strong offer for people who upgrade their handsets often.
The deal matches the iPhone Upgrade Program, which is one more method Apple assists users pay for the newest iPhone annually, with AppleCare+ coverage comprised. Both are options to financing the price of a handset via a mobile supplier or with a different credit card (and the fees and interest that might involve).
The firm also has a trade-in program for iPhone, which motivates users to update at a reduced price instead of purchasing a new handset outright. Luca Maestri (Apple CFO) claimed on the call that a number of users are taking benefit of that deal. The firm is seeing over 5 times the amount of iPhone trade-ins as it did a year back.
Apple is far from the only firm to provide interest-free, 24-month financing on handsets. Yet, it is a bonus for users with an Apple Card, and may assist Apple attract users to update their handsets more often as compared to they may otherwise while slashing out the mediator. As with its services such as Apple TV+, Music, and Arcade, it appears Apple is making an attempt to reframe iPhone upgrades and financing as a monthly expense, and not essentially a one-time, large hit to wallets.
On a related note, T-Mobile has declared an association with Apple to provide almost 3% cashback on in-store buyouts for users who employ the Apple Card. The firm claimed it’s “the only wireless supplier to provide 3% Daily Cash on Apple Card.”