Apple Card Monthly Financing No Longer Available for SIM-Free iPhones

[CalMin]

I started an “Apple Savings Account” which is an account setup just for buying Apple products. I have $40 transferred to it every paycheck. This is my own way of doing 0% financing.

This is the way.

And yes - I know not everyone can pay cash for a phone, but then again no-one needs a $1,000 phone. Buy what you can afford - installment payments just encourage excess consumption.

 

[Syk]

No you will not. Only phones activated on T-Mobile, AT&T or Verizon will have the 0% financing over 24 months option.

Well screw applying for an AppleCard now.

So to buy an unlocked from Apple I have to pay for it in full now correct?

Guess my son on ATT can use his Apple Card if he decides to upgrade.

 

[McScooby]

Although they’ve removed the card option, does the iPhone upgrade programme not still exist to spread payments?

 

[webkit]

This doesn't sound legal.

What aspect doesn't sound legal to you?

 

[DotCom2]

This doesn't sound legal.

Both Apple and Goldman Sachs have a boat load of attorneys who I'm sure would disagree with you. They are not stupid.

 

[Viridian5]

In Canada 0% financing from Apple's financing partner has already gone the way of the Dodo.

View attachment 2246202

This is super disheartening as I’m one of MANY Apple Card holders who got the card specifically for the 0% installments. Hook them with 0% Apr and 4.15% returns in savings, then slowly make those perks less and less lucrative for those already in the ecosystem.
The only way I see this not going south in the next few years is if Goldman pulls out and the new partner is able to handle the program better

 

[fatTribble]

Both Apple and Goldman Sachs have a boat load of attorneys who I'm sure would disagree with you. They are not stupid.

Your logic and facts coupled with your reluctance to speculate wildly seem really out of place on a forum. 🤭🤪

 

[likegadgets]

This doesn't sound legal.

Credit Cards are very competitive. If one does not like the terms, easy to cancel or use another payment option. The card has no annual fee and there is no problem closing or not using the account. The zero rate financing likely promoted sales. This may or may not affect sales, but it is their prerogative.

 

[Xavier]

For real? Not cool. This is how I have bought my last few iPhones.

I can still buy through my carrier, great, but if Apple changes this for computers as well, whats the point in keeping this card? I can get much better perks with another card. Almost all incentive for Apple card would be gone.

 

[sw1tcher]

Apple today updated its U.S. Apple Card Monthly Installment plan to require those who use the feature to purchase an iPhone that is linked to AT&T, Verizon, or T-Mobile. With this change, the Apple Card Monthly Installment plan can no longer be used to purchase a SIM-free iPhone.

Potential work-around?

Buy the iPhone by using someone elses AT&T, T-Mobile, or Verizon account but paid for with your Apple Card so you can get it on Apple's monthly installment plan.

Since it will be unlocked, you can then transfer your wireless account to it later.

 

[Silverado]

We're so close to losing 0% on new Apple Products. I wouldn't be surprised with the iPhone 15 launch if Apple Card Monthly Installments move to a non-zero APR. Something like 0.99 or 1.99 wouldn't be surprising.

How do you know we’re so close to that?

 

[darkslide29]

This is the way.

And yes - I know not everyone can pay cash for a phone, but then again no-one needs a $1,000 phone. Buy what you can afford - installment payments just encourage excess consumption.

In hindsight with the recent news, yes I agree with you. But saving $40/mo for 2 years to buy outright, or paying $40/mo for 2 years with 0% financing essentially feels exactly the same in a monthly budget. Either scenario is buying what I can afford.

 

[Silverado]

That’s a really stupid move, have been buying unlocked phones for a long time…

As the article says, they are all unlocked.

 

[Silverado]

I would really like to know the true reasoning behind this. Seems quite strange to me but I'm not in the know.

My guess: people buy them on installments and sell them abroad for a profit.

 

[jayducharme]

Weird that the 24 month payback is limited to the iPhone. I would have thought that would be more useful when purchasing a Mac.

 

[iGeneo]

The carriers are behind eSIM-only iPhones too. Think about US travelers, pretty much forced to use international roaming and paying astronomical fees for doing such. Most of the time it costs more per day than a whole month especially in developing countries.

Wrong.. global eSim is available with multiple 3rd party carriers..

 

[zinacef]

Apparently they are also changing to American Express and if that limits the card to only the places that take Amex, with all this combined it seems to me they managed to screw up a good thing fast.

Where’d you hear this from? LOL

 

[iGeneo]

So I guess people who use prepaid carriers are SOL then

No, not at all.. you just don't get free financing.

 

[mattopotamus]

Weird that the 24 month payback is limited to the iPhone. I would have thought that would be more useful when purchasing a Mac.

It is offered on the Mac, but I think it is 12 months instead of 24.

 

[CalMin]

In hindsight with the recent news, yes I agree with you. But saving $40/mo for 2 years to buy outright, or paying $40/mo for 2 years with 0% financing essentially feels exactly the same in a monthly budget. Either scenario is buying what I can afford.

Respectfully, I disagree. Buying on credit is paying for something with money you don't have. Sure - you can make the payments each month, but that isn't the right way to think about money. What if something happens to your job, or if you have unexpected expenses.

When you buy it from money you have saved, you never need to think about the payment again. If you haven't saved the money then you can't purchase the phone.

 

[iVoid]

I have a 14 Pro Max, so won't be affected until iPhone 16 (I have been generally get a new iphone every two years), but this is a bad move.

I wonder how much the carriers are paying Apple in kickbacks to do this?

 

[AF_APPLETALK]

Agreed. I do prepaid, and while I can certainly buy one up front, it is nice to have the option to just pay with no interest. Carriers definitely throwing around their weight.

Same. I usually buy them outright but sucks that this option is being taken away.

I started an “Apple Savings Account” which is an account setup just for buying Apple products. I have $40 transferred to it every paycheck. This is my own way of doing 0% financing.

This is a good alternative. Will consider doing this after I trade up to whatever iPhone 15 model I get.

 

[Expos of 1969]

Carriers want users locked in on their "promotions." If you get free financing on an unlocked phone, you are less likely to buy a phone from the carrier. This is apple bending over backwards to the carriers (like they do with pretty much everything unfortunately).

With everything except their customers. Time will tell how much shoddy and greedy treatment customers will accept before walking away.

 

[k1121j]

There won't be much left to make this a card worth using soon...

 

[WarmWinterHat]

Well, I guess I'm paying full price. I absolutely refuse to do any business with carriers other than cell service.

Had no intention of upgrading my 13 Pro anytime soon, but still...