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MacRumors
Jan 16, 2013, 04:02 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/01/16/apple-adds-credit-options-for-chinese-buyers/)


http://images.macrumors.com/article-new/2011/07/beijingstore-500x333.jpgApple today added installment payment plans to its online store in China, giving Chinese buyers the option to purchase iPhones, iPads, and MacBooks via credit.

Consumers can choose to pay in installments on merchandise that costs between 300 yuan ($48) and 30,000 yuan ($4,800), through a plan from China Merchants Bank Co.

As Bloomberg (http://www.bloomberg.com/news/2013-01-16/apple-lets-buyers-on-china-website-pay-in-two-year-installments.html) notes, the credit option puts expensive devices like the iPad and the iPhone into the reach of Chinese workers, who often cannot afford to purchase Apple's devices.
Apple, based in Cupertino, California, is trying to make its products more affordable in China after being surpassed by local suppliers such as ZTE Corp. and Lenovo Group Ltd. in the smartphone market. The iPhone 5, released in China last month, is priced at 5,288 yuan on Apple's local site, equal to about six weeks' pay for the average urban worker.

"There is an enormous mid-range consumer market that they are not tapping into," said Mark Natkin, managing director of Marbridge Consulting Ltd., a Beijing-based market research firm. "They're trying to figure out how to make products more accessible to that market segment. This is a good step in that direction."In the Foxconn factories where Apple's mobile devices are assembled, junior level workers (http://www.macrumors.com/2012/02/17/foxconn-again-raises-wages-for-entry-level-workers/) make approximately 1,800 yuan per month, which means the iPad and the iPhone are nearly unattainable without an installment option

Apple is currently offering (http://store.apple.com/cn/browse/finance/installments) payment plans over three, six, 12, 18, and 24 months. A promotion that lasts through January 23 makes payment plans lasting a year or less interest free. Payment plans with 18 installments incur a fee of 6.5 percent of the selling price, and 24 installment plans have a fee of 8.5 percent.

Article Link: Apple Adds Credit Options for Chinese Buyers (http://www.macrumors.com/2013/01/16/apple-adds-credit-options-for-chinese-buyers/)



macingman
Jan 16, 2013, 04:04 PM
Should make it accessible for many more Chinese people which may not have savings but may include it in their regular wage.

ArtOfWarfare
Jan 16, 2013, 04:11 PM
This should help Apple make more sales of all their hardware, Macs included, not just iOS devices, correct?

Sounds like a win for developers of either (or both) platforms to me :)

charlituna
Jan 16, 2013, 04:46 PM
No, no, no. Apple is supposed to make a cheap phone for them. They must. John Sculley said so

Davmeister
Jan 16, 2013, 04:50 PM
Wow. 9 a day...I feel bad :S (what they're earning I mean)

mrsir2009
Jan 16, 2013, 05:11 PM
Now the working class Chinese can go crazy on the high puchase too :cool:

iMikeT
Jan 16, 2013, 05:14 PM
How about every employer in the world paying its employees a living wage and then some so people don't have to resort to payment plans? Seriously, how much are some of these payment plans in relation to a Chinese person's monthly income, 20%? 50%?

velocityg4
Jan 16, 2013, 05:24 PM
How about every employer in the world paying its employees a living wage and then some so people don't have to resort to payment plans? Seriously, how much are some of these payment plans in relation to a Chinese person's monthly income, 20%? 50%?

You can help by not purchasing products from these companies. Then spend more for products from competitors that pay their employees better.

MrDc2
Jan 16, 2013, 05:35 PM
I would hate to live in China. That is freaking ridiculous. I don't care if they're factory workers or service people; they should earn a livable wage. What they make is just nonsense. I am an American though and I have no business telling the Chinese what to do or how to run their country.

----------

How about every employer in the world paying its employees a living wage and then some so people don't have to resort to payment plans? Seriously, how much are some of these payment plans in relation to a Chinese person's monthly income, 20%? 50%?

Corporate greed will never end. I don't care if they operate in a socialist, community or capitalist country... it will always exist.

Koodauw
Jan 16, 2013, 05:41 PM
I dont understand how this makes it more obtainable. It still costs the same, and the workers income stays the same.

If you cant afford to save $50 a month to save and buy an iPad, how can you afford $50 a month to make the payments on the iPad you now own. :confused:

velocityg4
Jan 16, 2013, 06:08 PM
I dont understand how this makes it more obtainable. It still costs the same, and the workers income stays the same.

If you cant afford to save $50 a month to save and buy an iPad, how can you afford $50 a month to make the payments on the iPad you now own. :confused:
It's even worse since now a desperately poor person had even less money due to interest.

iSayuSay
Jan 16, 2013, 06:18 PM
I dont understand how this makes it more obtainable. Its still costs the same, and the workers income stays the same.

If you cant afford to save $50 a month to save and buy an iPad, how can you afford $50 a month make the payments on the iPad you now own. :confused:

They actually don't own their iPad until they solve the whole installment. And 24 months later, their iPad is getting old, crappy and needs to be replaced.

It's even worse than 2 years iPhone contract since it doesn't come with data plan. They pay for the iPad alone.
Moral of the story : don't buy electronics unless you can pay them for 6 months top.

iLondoner
Jan 16, 2013, 06:51 PM
I would hate to live in China. That is freaking ridiculous. I don't care if they're factory workers or service people; they should earn a livable wage.

They do earn a living wage... for China.

But Chinese living wages are for housing, food and essentials. And the last time I checked, buying BMWs, going on world cruises, or buying the latest techno products aren't classed as essentials.

MrDc2
Jan 16, 2013, 07:26 PM
They do earn a living wage... for China.

But Chinese living wages are for housing, food and essentials. And the last time I checked, buying BMWs, going on world cruises, or buying the latest techno products aren't classed as essentials.

Did I say luxury cars, world cruises and buying techno products were essential to life or are you putting words in my mouth? Yes that was a rhetorical question.

Junior level workers make 1500 yuan (248 dollars) ( 186 EUR ) a month WITH mandatory over-time. Average rent in Shanghai/Beijing is 2000-3000 yuan per month for a small apartment not to mention cost of basic living essentials like hygiene products and food.

It's easy to say that's all good and well while sitting at a desk chair in Europe.

thekev
Jan 16, 2013, 07:36 PM
Blah if you were making so little per day, would you really want to spend so much of it on a phone? If anything it seems more likely to work for the engineers and higher level workers.

Sardonick007
Jan 16, 2013, 07:50 PM
Next time you hear somebody say China is 3rd world and full of poor people, slap them with an 800 iphone and show them how much of the U.S. China actually owns. (let alone Dubai) Soon we're going to be eating rice and making faux products to keep up with the world economy.

lukecro
Jan 16, 2013, 07:51 PM
Apple should give all of its Foxcon/factory workers free iPhones and/or iPads... Seems a bit cruel that they have to spend 50 hours/week building iDevices that they never actually get to use and will never be able to afford. Given Apple's high profit margins on these devices, it wouldn't really cost them that much to give their low-paid employees a free last-generation iPod touch or something every once in a while. So they can own an example of what they're making by the millions. (Or, historically, see Ford's old idea that anyone working at a Ford car factory should be paid enough that they can afford to buy a Ford.)

Sardonick007
Jan 16, 2013, 07:53 PM
All the news about the poor workers is hilarious. First off, they're not so poor, and second, nobody held a gun to their head and said "don't amount to anything but a factory worker". Same goes for all the blue collar whiners in the states hiding behind the vale of union malarkey. Get an education, get a better job and quit blaming those that have skills or positions for your BS. If people in China can afford an iPhone, then by all means they should be able to get one without people pitching a fit. Besides, they own most of what you're sitting on, computing on, walking in, wearing and eating (if you're unlucky enough to eat chickedy china).

raptorstv
Jan 16, 2013, 07:58 PM
This is a smart move on Apple's side... Instead of releasing the cheaper version of iphone

Amacfa
Jan 16, 2013, 08:03 PM
Just what china needs: credit.

raptorstv
Jan 16, 2013, 08:10 PM
I dont understand how this makes it more obtainable. It still costs the same, and the workers income stays the same.

If you cant afford to save $50 a month to save and buy an iPad, how can you afford $50 a month to make the payments on the iPad you now own. :confused:

Dont forget that some people would spend more than they can afford...

coolspot18
Jan 16, 2013, 08:30 PM
Should make it accessible for many more Chinese people which may not have savings but may include it in their regular wage.

The Chinese save more than the average American, in fact they have one of the highest rates of savings in the world.

But obviously the iPhone is an expensive purchase for even the middle class still.

How about every employer in the world paying its employees a living wage and then some so people don't have to resort to payment plans? Seriously, how much are some of these payment plans in relation to a Chinese person's monthly income, 20%? 50%?

Cost of living in China is still lower than in Europe of the United States. The iPhone is an import and will remain expensive... just like how European imports are expensive in North America or vice versa.

China has a middle class of ~300,000,000 people ... and probably a couple million super rich. The size of the luxury market is growing like crazy in China, so Apple is just trying to get a piece of it.

village master
Jan 16, 2013, 08:48 PM
Wow. 9 a day...I feel bad :S (what they're earning I mean)

请问你收入多少?What is your income?(我是一位来自中国的毕业大学生I am a graduate students from China)

dontwalkhand
Jan 16, 2013, 09:13 PM
So now we are teaching the Chinese the true American way, mounds of credit card debt is the answer to attaining products you can't afford!

charlituna
Jan 16, 2013, 09:29 PM
How about every employer in the world paying its employees a living wage and then some so people don't have to resort to payment plans? Seriously, how much are some of these payment plans in relation to a Chinese person's monthly income, 20%? 50%?

How about you stop acting like having a smart phone is a right rather than a privilege

----------

I would hate to live in China. That is freaking ridiculous. I don't care if they're factory workers or service people; they should earn a livable wage.

Who says they don't. Just because they can't spend $1000 at the drop of a hat doesn't equal them being immorally underpaid etc

Plutonius
Jan 16, 2013, 09:33 PM
Finally, someone is crediting the Chinese :D.

dontwalkhand
Jan 17, 2013, 12:54 AM
How about you stop acting like having a smart phone is a right rather than a privilege

----------



Who says they don't. Just because they can't spend $1000 at the drop of a hat doesn't equal them being immorally underpaid etc

They have to take into account the local economy when determining the pricing of a product, while still allowing it to maintain value. Pricing can only be different by a couple dollars at most when pricing an item from country to country, to prevent "I am going to go to China to buy an iPhone for $100"

macingman
Jan 17, 2013, 01:58 AM
Next time you hear somebody say China is 3rd world and full of poor people, slap them with an 800 iphone and show them how much of the U.S. China actually owns. (let alone Dubai) Soon we're going to be eating rice and making faux products to keep up with the world economy.
Just because the government is rich and there is a growing upper class doesn't mean that people there are not dirt poor.

When up visit china it is apparent that there is a huge disparity in demographics.

iMikeT
Jan 17, 2013, 04:27 AM
Cost of living in China is still lower than in Europe of the United States. The iPhone is an import and will remain expensive... just like how European imports are expensive in North America or vice versa.



The cost of living is low in many places around the world. However, the wages are also much lower in many places around the world.



How about you stop acting like having a smart phone is a right rather than a privilege



When did I say it was a right to own a luxury item such as an iPhone?

NoMoreSony
Jan 17, 2013, 05:10 AM
Just two simple facts -

"A promotion that lasts through January 23 makes payment plans lasting a year or less interest free."

"Apple will announce its earnings for the first fiscal quarter (fourth calendar quarter) of 2013 on Wednesday, January 23.

Interest free payment plans in one of the biggest Apple markets lasts only through the day when earnings will be announced... Hmm... Looks someone has very big problems with the sales and the figures needs to be improved right now.

superman23
Jan 17, 2013, 11:58 AM
Junior level workers make 1500 yuan (248 dollars) ( 186 EUR ) a month WITH mandatory over-time. Average rent in Shanghai/Beijing is 2000-3000 yuan per month for a small apartment not to mention cost of basic living essentials like hygiene products and food.

Average rent in Manhattan is $3,000/month for a studio.

junior level workers in the U.S. can't afford that either...

JAT
Jan 17, 2013, 12:28 PM
In the Foxconn factories where Apple's mobile devices are assembled, junior level workers (http://www.macrumors.com/2012/02/17/foxconn-again-raises-wages-for-entry-level-workers/) make approximately 1,800 yuan per month, which means the iPad and the iPhone are nearly unattainable without an installment option
Um, the only difference between saving the right amount until you have the total to purchase, and buying on credit is that the credit costs more. So "unattainable" applies to both.

Arcady
Jan 17, 2013, 12:35 PM
I wish I could buy things on credit with only 6.5% interest. Apple's stupid Barclay credit card is anywhere from 14-29%.

ryuok
Jan 17, 2013, 01:19 PM
China has a middle class of ~300,000,000 people ... and probably a couple million super rich. The size of the luxury market is growing like crazy in China, so Apple is just trying to get a piece of it.

Your number is meaningless. How do you define middle class? I think mostly China's self-defined "middle class" is in fact poorer than the working class of the US. A person who makes US$500 a month would be considered middle-class in China, i.e. poor people by western standard.

In Hong Kong, a person has to own a property valued at US$1 million and an income of US $5000 to be an entry-level middle class. A typical middle-class person in Hong Kong owns a US$3 million property, a luxury car valued at US$200,000 (incl. 115% tax) and a monthly income of US$20,000.

coolspot18
Jan 17, 2013, 01:41 PM
A typical middle-class person in Hong Kong owns a US$3 million property, a luxury car valued at US$200,000 (incl. 115% tax) and a monthly income of US$20,000.

Are you serious? I don't know where you got your numbers from, but the middle class in Hong Kong only makes 10,000HKD - 25,000HKD a month (household).

Only 3% of Hong Kong's household makes more than 100,000HKD... or 12500.00USD a month...

http://www.gov.hk/en/about/abouthk/factsheets/docs/population.pdf

iMikeT
Jan 17, 2013, 02:20 PM
Just two simple facts -

"A promotion that lasts through January 23 makes payment plans lasting a year or less interest free."

"Apple will announce its earnings for the first fiscal quarter (fourth calendar quarter) of 2013 on Wednesday, January 23.

Interest free payment plans in one of the biggest Apple markets lasts only through the day when earnings will be announced... Hmm... Looks someone has very big problems with the sales and the figures needs to be improved right now.



No need for the conspiracy theory as the quarter being reported on the 23rd is between October 1 through December 31. Sales from January 1 through January 23 will count in the quarter of January 1 through March 31.

I suggest you get your simple facts right next time.

Apple2
Jan 17, 2013, 08:42 PM
请问你收入多少?What is your income?(我是一位来自中国的毕业大学生I am a graduate students from China)

I make about $100,000 a year. The US middle class is from about 55-125 thousand yearly.

NoMoreSony
Jan 18, 2013, 05:36 AM
No need for the conspiracy theory as the quarter being reported on the 23rd is between October 1 through December 31. Sales from January 1 through January 23 will count in the quarter of January 1 through March 31.

I suggest you get your simple facts right next time.

Almost every time during earning calls Apple also gives some information about current business (especially, if the things in the last quarter looks bad).

Some remarks about great success on one of the biggest markets (based in reality on interest free loans) could help keep Apple shares from crash.

No conspiracy, just pure and simple facts. Keep too much Apple shares? My deepest condolences.

KdParker
Jan 18, 2013, 08:40 AM
Looks like China is starting down the path of living above your means and becoming a credit based society.

Solomani
Jan 19, 2013, 12:28 AM
Just what china needs: credit.

Yes. It's about time that the Chinese learn the American Way of .... fiscal irresponsibility and debt enslavement.

With their population of 8 trillion people, China's national debt should surpass the USA by 2018.

;)

MrDc2
Jan 20, 2013, 02:53 PM
Average rent in Manhattan is $3,000/month for a studio.

junior level workers in the U.S. can't afford that either...

I'm sorry. You're right. I won't care about impoverished Chinese people anymore. :cool:

iMikeT
Jan 21, 2013, 06:48 PM
Almost every time during earning calls Apple also gives some information about current business (especially, if the things in the last quarter looks bad).

Some remarks about great success on one of the biggest markets (based in reality on interest free loans) could help keep Apple shares from crash.

No conspiracy, just pure and simple facts. Keep too much Apple shares? My deepest condolences.



I really want to vomit from your latest reply.

First of all, EVERY public company that reports financials issues a guidance for the next quarter including Apple.

Secondly, I highly doubt that offering the Chinese market a payment plan in the first 23 days of the quarter will impact the quarter in a significant way.

Lastly, claiming that Apple reporting financials and this promotion going hand-in-hand is rather conspiratorial and not "just pure and simple facts", as you state.

I suggest that you stop looking for patterns in the tea leaves and take off the tin foil hat from time to time.