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Apple Card Monthly Financing No Longer Available for SIM-Free iPhones
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Tim Cook is turning into an abysmal CEO
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.
All iPhones purchased through the Apple Card Monthly Installment plan are unlocked so carrier switching is available at any point, but at purchase, customers will need to have a plan with a supported carrier. Buying a SIM-free iPhone and linking it to a carrier like Mint Mobile will no longer be possible using installments.
Apple announced these changes in an updated support document back in June, and the monthly installment plan has officially been updated. Prior to now, Apple Card installments could be used to purchase an iPhone online with the option to connect to a carrier at a later date, which allowed customers to buy an iPhone and then link it to any carrier of their choosing.
Apple already required customers using Apple Card installments to choose one of the main three carriers when in stores, and now the online policy matches the in-store policy.
With the Apple Card Monthly Installment plan, Apple Card holders can pay for their devices over a 24-month period with 0% APR and 3% Daily Cash back on payments.
Apple today is also changing the monthly installment term for the Apple Watch, and customers will be required to pay off the device over 12 months instead of 24 months. Apple now uses a 12-month term for Apple Watch, Macs, displays, and iPads, with the 24-month term limited to the iPhone.
Article Link: Apple Card Monthly Financing No Longer Available for SIM-Free iPhones
I knew the days of free money were going to end. 24 month 0 interest is free money and only a fool would not bite. especially with CDs paying 5.4% APR.
good while it lasted, I bet GS lost big on that.
good while it lasted, I bet GS lost big on that.
I'm on a major carrier and am at least another year away from an upgrade if not longer but this drastically changes my opinion on Apple for the worse. I'm shocked they would throw a large segment of their customers directly under the bus like this just because they aren't giving more money monthly to the big three.
Speculation — one mentioned by others as well:
Apple’s poor planning, including probable assumptions about how much they had leverage, in creating the Apple Card is causing a shockwave of struggles and, in this aspect, wireless carriers are likely taking advantage of that, offering to jump back in on financing/subsidizing as long as Apple returns to somewhat locking customers into plans. Basically, Apple exec arrogance apparently navigated them into a chasm.
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Yeah I was mostly referring to doing it automatically and the end user not have to do anything.
If they're not doing any type of check then what's the point of what Apple's doing? Didn't the article still say the phone is unlocked no matter which carrier you choose?
So, you reached the “Place Order” or equivalent button/step? Bacause the wording makes it seem you’ll need to select a wireless/cell plan (current or new).
Unfortunately, this is the entire reason I HAVE the Apple Card—24mo financing for an unlocked phone. So…I mean, yeah I’ll save, but my immediate incentive to upgrade to the 15PM is zero. Apple, what are you DOING, bruh!?
Is it possible that its not carriers but Apple pushing for this of their own accord in order to drive acquisition of iPhone Upgrade Plan users?
Or - and this is possible too - it's a way to dissuade resellers. When I worked in Apple stores, 10 years ago, it was a common occurrence on iPhone launch days to be inundated by obvious resellers (large groups of people all together, all paying cash, only buying unlocked phones). My experience was before Apple Card, so if resellers could get 0% financing on new unlocked iPhones, they could then turn around and resell them before needing to pay a single monthly payment, and even if they had to pay a monthly payment there's no risk to them so long as they can sell it at the same price as purchased.
Oooooor the carriers colluded with Apple to convince them or pay them to change their policy.
Or - and this is possible too - it's a way to dissuade resellers. When I worked in Apple stores, 10 years ago, it was a common occurrence on iPhone launch days to be inundated by obvious resellers (large groups of people all together, all paying cash, only buying unlocked phones). My experience was before Apple Card, so if resellers could get 0% financing on new unlocked iPhones, they could then turn around and resell them before needing to pay a single monthly payment, and even if they had to pay a monthly payment there's no risk to them so long as they can sell it at the same price as purchased.
Oooooor the carriers colluded with Apple to convince them or pay them to change their policy.
They are currently all the same price, regardless of whether they ship with a carrier's eSIM. Hopefully, they wont't revert back when the 15s come out. None of them currently ship carrier locked.
As someone who uses Spectrum Mobile, and was planning on getting the new 15PM on an installment plan, this is sooo disappointing.
It may, as a tie-in requirement. The basic idea is a company cannot require the purchase of another product or from a specific entity as a condition to buying one product. Lots of vagaries in the law in this area though.
Agreed, but with interest rates skyrocketing it’s not exactly that surprising… 🤭
I just got a new Macbook Air with my new Apple Card and monthly installments weren't allowed. Now this. I just got the card and now I wish I didn't. It's turning into a 3% cash back for Apple purchases, 2% for Apple Pay card. No extra benefits, sigh.
losing the SIM card tray in the States really effected my business. We base in the States but spend much of our time working in developing nations were e-sim is limited to monthly contracts on local carriers. No other local option. This has really been a pain for my employees.
Why is Apple so beholden to U.S. carriers?
Why is Apple so beholden to U.S. carriers?
Even with this change, it's still better than the early iPhone years when Apple forced/pushed buyers to sign up for a 2 year AT&T contract (in the U.S., other carriers elsewhere) in order to buy an iPhone.
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For everyone but the stockholders... and they are, after all, his "boss".
Why, on this very site: https://www.macrumors.com/2023/06/30/goldman-sachs-apple-partnership-amex/
The part about only being accepted where Amex is accepted is speculation on my part. And since then other rumors have come out to say that Goldman Sachs is stuck with it for now at least anyway.
Still, all in all doesn't seem to be on a good trajectory.
Well yeah that's because (at a time before their dominance) Apple managed to convince the CEO of AT&T to just once, ONCE try putting out a phone that's not absolutely riddled with adware. He agreed, but only if it was an exclusive. It remains one of the legendary business deals in all of tech history. An example of where, just once, someone managed to pull a telco CEO's head out of his ass long enough to see the light. And of course only legendary negotiator Steve Jobs could pull it off.
As a stockholder I would like to see some moves that are a little less blatantly aggressive about giving control back to the telcos. First eSIM only, now this.
I really, really, (really) hate to say it, but Apple is putting themselves into a position where as a PHONE, Android is a better choice for too many reasons. If you want a computer that you can just buy and use without a telco dictating how you buy it and Apple micromanaging how you use it, get a Mac.
The ecosystem is extremely effective, the pain of switching is still greater than the pain of staying on iPhone (I switched away from Android for several reasons, after all) but it's not on a great trajectory.
I did like their relatively easy expense management and "no fees" approach, but then they kicked the interest rate up so high God help you if you miss even one month with even a small balance. Wipes out all potential savings. And it seems Goldman Sachs is very unhappy with the "no fees" approach.
I was going to buy the new iPhone and finance it on the card but now I'm pretty much decided to just express replace my iPhone 13 before AppleCare runs out and just stick with it another few years. If I could have bought it on zero interest I would have done it, now it has cost them a sale because I don't need it that bad. I'll just wait.