This demonstrates a great understanding of the mind of the typical American consumer by Apple. It's all about the monthly payments rather than the total cost. Expect record setting iPhone sales with the 18 Pro and Folding iPhone regardless of price increases. The gravy train will keep rolling and the stock will keep rising. I fully expect to see 36-month financing from the cellular carriers this Fall as well.
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'Apple Upgrade' Program Reportedly Launching Next Week
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GuruZac
macrumors 68040
WEF 2030 plan explicitly stated “You’ll own nothing, and be happy.” We’re headed that way quickly.
Well this is one way to keep people’s vision away from price increases. Skate towards the monthly payment. The puck has landed.
hovscorpion12
macrumors 68040
Based on Klarna’s site, they offer Annual Percentage Rate (APR) ranges from 0.00%-35.99% APR based on creditworthiness
Here's where stuff like this article goes off into la-la land for me with everyone and their uncle claiming you can't just buy anything anymore. Did I miss where Apple said they won't outright sell you an iPhone or a MacBook or an iPad or any material "thing" they sell? It seems to me if you have the money, you can outright BUY and OWN with one purchase any "thing" you want from Apple.
What I'm against is people judging others who maybe might have $1K lying around and could outright pay for a phone, but might sleep better at night knowing they could make interest-free payments over time and keep a little cushion in the bank, just in case. So many people here going off the deep end like you'll soon not be able to outright buy anything from Apple, and I just didn't take that from this article.
lazyrighteye
Contributor
From the OP, it sounds like anyone currently enrolled in iUP will approach this next upgrade cycle in Sept. the same way they've always approach new iPhone launches. Those not currently enrolled in iUP will no longer be able to enroll in iUP as they clearly want to push people to enrolling in AU. I would not be surprised if they move all iUP members to AU for the '27 iPhone upgrade cycle.
The rumored lack of AppleCare seems a weird / unfortunate / annoying omission from AU - I guess that's to push us al to AppleCare One. MORE REVENUE STREAMS! Aside from the breathtaking rising cost of everything, [emotionally] that's one of the big "benefits" to iUP - knowing that your device if [more or less] fully covered. It's [partly] why I don't use cases on my iPhones.
turbineseaplane
macrumors Penryn
No argument there. Like I said, we're sort of talking about different aspects of this.
AT&T and Verizon already offered 36 months.
Verizon has added 48 months if you have the Simplicity plan since that plan doesn't have device subsidies.
I'll try to not get too deep into this because I feel much different than you, but I can't afford a house or a car outright, but we (most people, maybe not most of the millionaires here but most people) still finance them instead of doing without because we have enough income each month to make the payment. Those are even worse financially, though, because they are typically not interest-free! If someone doesn't feel comfortable spending $1500 up front for an iPhone, but does have an extra $60 each month for an interest-free payment, why not? To "afford" something can have different meanings, depending on how you pay for it.
turbineseaplane
macrumors Penryn
I think we should exclude a house example, as it's an absolutely necessity to have shelter (either by renting or "owning" via mortgage ... we'll exclude those who buy outright here).
Yes, I agree that "affording" something has all sorts of meanings. I have a cousin who makes $350k+, is single with a mortgage, but due to her spending habits she is broke all the time.
She also has zero retirement plan. (Nurse working as IC)
She always has a new car she can "afford" the payments on though. ☹️
I won't be surprised if she has an iFold on financing also. I usually first see the new iPhones in her hand.
August West
macrumors 6502a
And there are those of us that put everything possible on their cards to get the rewards (2% on my cards) then pay off the balance in full each and every month. Not everybody dives headfirst into debt but I think those of us that don't are in the minority.
Yep. I've got cards ranging from 3% on all purchases to 5% on some and Chase is even giving me 9% on gas, groceries, and dining this quarter. I put every expense that I can through my cards and haven't paid interest since 2018. I've also collected over $3500 in sign up bonuses.
A few thoughts:
- I do think this will be interest free as long as you make your payments on time. Klarna will either be paid by Apple some small % fee per device financed (worth it for Apple as big picture, they'll sell more phones given they can offer the free financing), or Klarna will just eat the 0% to be Apple's partner here and get such a huge influx of customers/borrowers (with the ability to make money on the subset of people who won't make their payments on time)
- Maybe the interest free financing is subject to a credit check - and only if you're above some credit score/profile do you get the 0%. Although if this is the case, I would imagine the bar for 0% will be lower than usual, as it'll be subsidized/encouraged by Apple in some way
- Unbundling AppleCare totally makes sense, with AppleCare One now out there. A bunch of ppl have AC1, need ability to not be forced to pay for AC+ separately
- I do think this will be interest free as long as you make your payments on time. Klarna will either be paid by Apple some small % fee per device financed (worth it for Apple as big picture, they'll sell more phones given they can offer the free financing), or Klarna will just eat the 0% to be Apple's partner here and get such a huge influx of customers/borrowers (with the ability to make money on the subset of people who won't make their payments on time)
- Maybe the interest free financing is subject to a credit check - and only if you're above some credit score/profile do you get the 0%. Although if this is the case, I would imagine the bar for 0% will be lower than usual, as it'll be subsidized/encouraged by Apple in some way
- Unbundling AppleCare totally makes sense, with AppleCare One now out there. A bunch of ppl have AC1, need ability to not be forced to pay for AC+ separately
Your cousin sounds like me many years ago! 🙂
You only live once and might as well enjoy it while you can!
Wow, what a brilliant financial masterclass for society from Apple’s management! Is this where we’re headed, subscriptions and payment plans for breathing, eating, pooping, and sex? And if you are finally drained of money and can’t pay up, they’ll just slap a lock on your mouth and your privates.
The Game 161
macrumors Nehalem
The Game 161
macrumors Nehalem
jonnyb098
macrumors 601
You can buy it outright and keep it and own it. Or yes. You can lease/rent your phone using a predatory bottom feeder service like Klarna.
turbineseaplane
macrumors Penryn
As long she doesn’t expect help from family in retirement she isn’t saving for!!
C7 POWER
macrumors 68020
Technically we have to reenroll each year when we get a new phone, so I have a feeling those of us in the 1UP Program through Apple will still fall under this change sadly which sucks. I love how smooth it is through Apple and Citizens One.
Probably not a great sign of a "strong healthy economy" partnering with a "BNPL" company.
Klarna does not have the traditional protections or guardrails of a traditional credit card or debit card
C7 POWER
macrumors 68020
Agree!! I typically pay as soon as the charge settles to the cards, I havent used my debit card in years simply rather get reward points. Just on my Apple Card alone I have had since it first launched I have received $4200. Not counting any rewards on my other cards.