In context: When Apple launched its no-fee credit card back in August, it seemed a bit gimmicky. However, the account services through the Wallet app are pretty convenient, especially the ability to pay when you want (even daily) right through your phone.
Now Tim Cook has revealed during a Q4 earnings call that Apple Card users can have 24-month, interest-free financing on new iPhones through their card. The financing plan is nothing new. Apple has been offering it for a while now via its iPhone Upgrade Program.
Mobile providers have similar financing options. What makes it different for Apple Card users is the three-percent cashback on the purchase. That and the conveniences mentioned before. When combined with the upgrade program’s free Apple Care+ and iPhone trade-in value, it beats financing through a carrier.
Apple CFO Luca Maestri mentioned that the company has seen a positive response to the current program. Trade-ins for iPhones are up 400 percent over last year, which means a lot of people are opting to have a running bill with Apple. These are the people that the company is targeting with the new offer.
It is unclear exactly when Cupertino plans on implementing the new Apple Card perk. Tim Cook vaguely mentioned “later this year.” As we are heading into November, my bet would be we see it before Black Friday. At least that is what I would do to take advantage of the holiday shopping spree.
Overall, the deal is a double win for Apple as it will likely bring in more iPhone financing as well as new Apple Card enrollees.