Apple’s CEO, Tim Cook, announced that Apple card users’ will be able to buy iPhone on a 24-month installment plan and that too, with a zero percent interest and will also be able to get a cashback of 3 percent. He adds that Apple card users’ will be able to manage payments in the wallet application.
Apple’s CEO Tim Cook announced that this feature would be added to the Apple card by the end of this year that is before the holiday shopping season in today’s earnings call for the fourth quarter of 2019. By this new feature, he said that Apple card users’ will be able to purchase an iPhone and pay later using the 24-month installment plan and then own the iPhone.
Apple provides this service with completely no interest and also with a 3 percent cash back for every purchase. In August, Apple launched the Apple card, which will be of great use to people who want to combine their mobile devices with their daily purchases. Apple card is a titanium card with laser-etched lettering. And also, the card can be used digitally with Apple Pay.
Moreover, the card can be used for making transactions, checking balances, and the card provides more functions. The 3 percent cashback offer provided by the Apple card is given on a ‘daily basis’ based on the purchase made. But this cashback is only given by certain retailers like Walgreens, T-Mobile, and Uber.
This new feature is indeed a part of the Apple iPhone Upgrade Program, so that iPhone owners can upgrade to a new model every 12 months. Though the cashback offer and the installment offer are old in the wallet app, the new feature is that you can manage payments in this application too.
Apple said, Apple card was the “most successful launch of a credit card in the United States ever. “Apple’s fourth-quarter earnings of its iPhone reached nearly $33.4 billion to $64 billion in total revenue. Since the September launch, Apple iPhone 11 has been the best selling handset phone. Following this, Apple wants to boost its sales.
Thus, Apple is finding ways to achieve this with its iPhone Upgrade program and with launching new features in its Apple card for increasing sales. With this new plan, customers can own their iPhone after 24 months of installment payment. And also, customers can trade-in for a new iPhone after 12 months of installment payment, which is based on their choice.
Say, for the latest iPhone 6S, you need to pay $32.24 per month. In comparison, the offer given by Apple is more convenient than the offer given by AT&T and Verizon. That is, Verizon needs you to pay the complete installment and does not offer any upgrading scheme. And AT&T also requires you to wait for 18-month plan for an upgrade, but it too provides you with the installment. But now, AT&T also provides the re-trade option at the end of 12-month on its 20-month scheme at the OST of $32.50 per month. But comparatively, Apple is the best option as it provides you to re-take and upgrade the phone at the end of 12th month itself.
Apple’s idea towards this system is that it will most likely keep the US to men attached to the Apple iPhone and helps for customer relationships. It yields high sales of the Apple iPhone. This will also help the upgrade cycle to be more frequent. Also, this will make the users’ to make the AppleCare+ services effectively.