During Apple’s Q2 2020 earnings call, CEO Tim Cook hinted at the company’s plan to expand Apple Card financing program to other products. When questioned by Bank of America analyst about Apple’s new financing plans, Cook confirmed that they are working on Apple Card’s iPhone 0% financing-like program for more products.
Without mentioning any other details, Cook said that we can expect a new financing program ‘shortly’. He added that at the moment the company does not have a policy on deferred payments. However, he clarified that owing to the extraordinary circumstances due to COVID-19 and to the company’s commitment to associate programs, Apple has been been deferring Card payments for past two months.
Expected devices and services in new financing program
Since the mention of the new finance plan by Cook, it is speculated that Apple might include Apple TV, Apple Watch, iPad, and Mac in hardware, and Apple Music, Apple TV+, and Apple Arcade in services, for 0% financing when purchased using Apple Card. However, there is no news of inclusion of accessories such as AirPods, HomePod, and others in the program.
New iPhone 0% financing
In December 2019, Apple launched zero interest financing for purchase of a new iPhone via Apple Card. Acceptable in Apple Store app, all Apple Stores and Apple.com, users can buy and pay for an iPhone in installments over 24 months.
Using an Apple Card, added in the Wallet app, customers can easily manage monthly payments from their iPhones. The repayment amount is added in the Apple Card balance to keep the user aware of the remaining balance. Currently, the installment plan covers iPhones with optional AppleCare+ and offers 3% cash back on Apple Card.
Furthermore, users can get a more budget friendly monthly installment by trading in their older iPhone models. However, user with out the Apple Card can also avail the trade in offer via iPhone upgrade program.
In August 2019, Apple launched its own credit card, Apple Card which can be used for all types of purchases. Sold as a titanium card with Apple Pay support, its selling point was ‘pay less interest’. Like conventional bank cards, Apple integrated its own credit card in the Wallet app to allow easy and fast electronic payments using iPhone or Apple Watch. The service offers daily cash back, low interest, 0% iPhone financing, electronic tracking of spendings, and no fees at all – no annual, half yearly, bi-monthly or monthly fees. Read more about Apple Card here.
When Apple launched the iPhone financing plan in 2019 via Apple Card, it was rumored that the company will add more products in the list, including hardware and services, in hope to retain as many customers as possible.