Apple Card-holders in the United States have a new incentive to upgrade to a new iPhone starting today — 24 months with zero interest.
According to a new report from CNBC, Apple today added a new feature to its Apple Card credit card: Monthly Installments, a 24-month, 0% interest way to purchase any of the current iPhone models.
Here’s Apple’s blurb promoting the new feature:
Introducing an awesome new way to buy an iPhone from Apple – online at apple.com, in the Apple Store app or at an Apple Store near you. Pay with interest-free monthly payments. Get Daily Cash back. And see it all alongside your everyday Apple Card purchases.
The program seeks to bring more iPhone customers directly to the Apple Store for purchases, adding a 3 percent cashback incentive to sweeten the deal. Those who make the purchase before the end of the year will get 6 percent cashback as a part of a holiday promotion that was announced earlier today.
CEO Tim Cook had suggested during the company’s last earnings conference call that Apple was looking into programs such as Monthly Installments to bring the up-front cost of iPhones down. High pricing, particularly internationally, was widely blamed for a year of flat iPhone sales that started with the 2018 holiday season, leading Apple to lower the price of the iPhone 11 and offer more aggressive prices for lower-end devices.
The new method replaces the previous Apple Store financing plan implemented through Barclays which was made redundant with the Apple Card’s arrival in August.
While the monthly installments are currently limited to the iPhone (and US-based customers), it seems likely that Apple will roll it out to other devices as well, such as the mega-expensive Mac Pro that’s launching this month.