Apple Card Introduces Interest-Free Financing for iPhones
When Apple announced the Apple Card earlier this year, it was met with both excitement and skepticism — and has somehow delivered on both. Despite being described by Goldman Sachs CEO David Solomon as the “the most successful credit card launch ever,” there have been some bumps along the way. While some of those problems may still exist, Apple seemingly has a couple of ideas for winning over fans.
This week Apple unwrapped two special offers for Apple Card users. The first is a permanent addition initially teased by CEO Tim Cook in an earnings call last October: interest-free financing on iPhones. Now cardholders can purchase a new iPhone from the company and manage their monthly payments from their Apple Card account, allowing them to make a single monthly payment.
Financing is currently available with terms of 24 months and discounts are available for those trading in eligible devices. For those who already have an Apple Card, there’s no other application required to receive financing. As for those who aren’t yet cardholders, they’re welcome to apply for the card at checkout. Also notable is that customers will earn applicable Daily Cash on the full price of the phone upfront instead of waiting for payments to be made.
Speaking of Daily Cash, the company is looking to make the holidays a little brighter by offering Apple Card users 6% cash back on Apple purchases through December 31st. This is double the 3% such transactions typically earn. Moreover Apple confirms that this limited-time offer will also apply to those taking advantage of the new iPhone financing feature on their card.
These new offers are just the latest improvements to the Apple Card since its debut in August. For example the company has continued to add partners to its 3% Daily Cash category. Currently the list includes Uber, Walgreens, Duane Reade, T-Mobile stores, and (most recently) Nike. Meanwhile Goldman Sachs, whom Apple partnered with for the card, has been getting up to speed, just recently beginning to report Apple Card accounts to the credit bureau TransUnion.
Between these two features — one being permanent and the other promotional — the Apple Card could be gaining some new fans. While the card does still lack a traditional sign-up bonus, 6% back on a new computer could certainly fill that void. As for the interest-free financing, while not entirely unique, the easy integration makes it more likely for cardholders who had put off upgrading to reconsider. In turn these latest developments could end up being a win-win for Apple and consumers.