Apple in Talks With Goldman Sachs Over Potential iPhone Buyer Finance Options

[MacRumors]

Apple is in talks with its investment bank Goldman Sachs about the possibility of offering customers financial loans when buying Apple products, according to a report by the Wall Street Journal on Wednesday.

The Wall Street firm is in talks to offer financing to shoppers buying phones, watches and other gadgets from Apple, people familiar with the matter said. Customers purchasing a $1,000 iPhone X could take out a loan from Goldman instead of charging it to credit cards that often carry high interest rates.

Talks between Apple and Goldman Sachs remain at an early stage and could still fall apart, according to WSJ. Both the tech giant and the investment bank declined to comment for the report.

Part of Goldman's discussions with Apple are said to involve taking over some form of Apple's iPhone upgrade program, which is designed for users who want to have the newest iPhone every year and comes with AppleCare+ included.

Those who sign up for the program in its current form can trade-in their existing iPhone for a new model after 12 monthly installments are made, starting a new cycle of the program each year. Apple started the program in September 2015 with the help of Citizens Financial Group, who finance the zero-interest loans for iPhone upgrades and higher-interest options for other device purchases. The program was introduced around the same time that wireless providers began reducing buyer subsidies for iPhones.

Goldman Sachs is said to view the potential financing deal with Apple as a way of growing its new consumer bank, as it looks beyond corporate clients to more fully embrace retail banking and consumer lending. Two years ago the investment firm launched Marcus, an online lender that helps people refinance credit-card debt, while the bank is also building a "point-of-sale" financing business that will offer loans to shoppers at checkout, according to people familiar with the firm who spoke to WSJ.

Article Link: Apple in Talks With Goldman Sachs Over Potential iPhone Buyer Finance Options

 

[maflynn]

Not surprising, people now need to finance the purchase of phones, i.e., iPhone X costs over a 1,000 dollars.

 

[haruhiko]

now we need to visit an iBank (pun intended) to finance our iPhone purchases?!

 

[Heineken]

Not surprising, people now need to finance the purchase of phones, i.e., iPhone X costs over a 1,000 dollars.

You should check the prices in Europe. 1000 bucks is not that much when you compare. I paid 1500 USD for my iPhone X 64 GB.

 

[44267547]

In world of when we have the option to take a loan out for a phone. No thanks. I usually purchase my iPhones out right, that way I don't have to deal with carrier restrictions and No monthly payments.

 

[BootsWalking]

Vampire Squid phone.

 

[Rogifan]

Not surprising, people now need to finance the purchase of phones, i.e., iPhone X costs over a 1,000 dollars.

iPhone upgrade program has existed since 2015 when no iPhone started at $1000. Sounds like Goldman would be taking over that business. Maybe this is the start of more upgrade programs for other hardware. I’d do an upgrade program for iPad and Apple Watch.

 

[44267547]

iPhone upgrade program has existed since 2015 when no iPhone started at $1000. Sounds like Goldman would be taking over that business. Maybe this is the start of more upgrade programs for other hardware. I’d do an upgrade program for iPad and Apple Watch.

I can understand financing An $1,100.00 iPhone through your carrier, because that is a lot of money for someone to pay in full up front. But even if you could, why would you finance an Apple Watch? I just feel like this is a way for someone to make an excuse to get themselves in debt that they don't need (Which adds to other monthly bills someone has). If Someone has the necessary funds, I would just pay it off and not finance. But I do understand its more 'comfortable' to make monthly payments, even though it's not always the most logical method just because it's an option to do so.

 

[Naaaaak]

If you can’t afford an iPhone on your credit card, you have no business going into business with a predator like GS.

 

[CarpalMac]

In a world war we have the option to take a loan out for a phone. No thanks. I usually purchase my iPhones out right, that way I don't have to deal with carrier restrictions and No monthly payments.

I'll wager that both you and I are in the minority with this though.

 

[gatearray]

Good old Goldman Sachs, those white-collar criminal insiders who engineered the financial crisis of 2008, ruling elite scumbags is what they are. Birds of a feather flock together.

 

[44267547]

I'll wager that both you and I are in the minority with this though.

You're correct, I just don't like having debt personally. Especially with tech products, I would rather just pay it off and have the advantage of owning it without carrier restrictions, monthly payments, etc.

 

[Abazigal]

In a world war we have the option to take a loan out for a phone. No thanks. I usually purchase my iPhones out right, that way I don't have to deal with carrier restrictions and No monthly payments.

I agree. If I need to take a loan to buy a phone, then it’s probably not a phone I should be buying in the first place.

 

[jermwhl]

If you can’t afford an iPhone on your credit card, you have no business going into business with a predator like GS.

I'm struggling to understand your logic on this one. The apple program is a zero interest program. Credit cards almost always have interest, barring some no interest promotional periods. Shouldn't your argument be - if you can't afford an iPhone, you have no business going into business with GS? Frankly, it's each individuals choice because its their money to spend how they decide.

 

[maflynn]

You should check the prices in Europe. 1000 bucks is not that much when you compare. I paid 1500 USD for my iPhone X 64 GB.

No doubt, not just Europe, but also Australia as well, the prices exorbitant

 

[neuropsychguy]

I will always finance if it's a 0% interest loan (e.g., through carriers) and if the product is something I could pay cash for. I'd rather keep the money in an account earning interest than having to pay it off up front.

 

[dominiongamma]

Good old Goldman Sachs, those white-collar criminal insiders who engineered the financial crisis of 2008, ruling elite scumbags is what they are. Birds of a feather flock together.

Yet Apple does business with them. Says a lot about Apple then if that’s the case

 

[Heineken]

You're correct, I just don't like having debt personally. Especially with tech products, I would rather just pay it off and have the advantage of owning it without carrier restrictions, monthly payments, etc.

I don't like loans and monthly payments either.

 

[Bacillus]

No doubt, not just Europe, but also Australia as well, the prices exorbitant

For that price, I would expect a bezel- and notchless, glassless phone with a week long battery life and a decent voice assistant
Not overcompromised technology aimed to compromise mediocre batteries and the lack of touch ID.
Let alone that I would take a mortgage for financing Apple's lifestyle and real-estate desires - which remain outrageous for most people.

 

[NoJobsNoCashNoHope]

That's pretty interesting. I can't wait to see what happens!

 

[A7ibaba]

I have advice. If you need a loan to buy iphone,then don't buy it.

 

[69Mustang]

I can understand financing An $1,100.00 iPhone through your carrier, because that is a lot of money for someone to pay in full up front. But even if you could, why would you finance an Apple Watch? I just feel like this is a way for someone to make an excuse to get themselves in debt that they don't need (Which adds to other monthly bills someone has). If Someone has the necessary funds, I would just pay it off and not finance. But I do understand its more 'comfortable' to make monthly payments, even though it's not always the most logical method just because it's an option to do so.

Most definitely this. If financing a watch or iPad is necessary then maybe those items really aren't needed. They're just "wants". If the loans aren't paid off in time, the interest rates on those loans can end up being predatory... up to 28% interest. Apple is a business and their job is to make money. I get that. It just seems... unseemly.

 

[thecrud]

Apple is in talks with its investment bank Goldman Sachs about the possibility of offering customers financial loans when buying Apple products, according to a report by the Wall Street Journal on Wednesday.

Talks between Apple and Goldman Sachs remain at an early stage and could still fall apart, according to WSJ. Both the tech giant and the investment bank declined to comment for the report.

Part of Goldman's discussions with Apple are said to involve taking over some form of Apple's iPhone upgrade program, which is designed for users who want to have the newest iPhone every year and comes with AppleCare+ included.

Those who sign up for the program in its current form can trade-in their existing iPhone for a new model after 12 monthly installments are made, starting a new cycle of the program each year. Apple started the program in September 2015 with the help of Citizens Financial Group, who finance the zero-interest loans for iPhone upgrades and higher-interest options for other device purchases. The program was introduced around the same time that wireless providers began reducing buyer subsidies for iPhones.

Goldman Sachs is said to view the potential financing deal with Apple as a way of growing its new consumer bank, as it looks beyond corporate clients to more fully embrace retail banking and consumer lending. Two years ago the investment firm launched Marcus, an online lender that helps people refinance credit-card debt, while the bank is also building a "point-of-sale" financing business that will offer loans to shoppers at checkout, according to people familiar with the firm who spoke to WSJ.

Article Link: Apple in Talks With Goldman Sachs Over Potential iPhone Buyer Finance Options

[doublepost=1518007239][/doublepost]You will need an account there to afford one.

 

[Dave245]

Personally I prefer to buy my items out right and directly from Apple.

 

[radiology]

If you need a loan to buy a $1000 phone, you shouldn’t be buying that phone.