Earlier today, Apple revealed how they have made it easier for customers to purchase a new iPhone by introducing three new options to complete the purchase. The three options available include paying via Apple Card, their iPhone Upgrade Program, or a trade-in program that they have launched.
The Apple Card was issued by Goldman Sachs to customers in the U.S. as a credit card that came with an integrated experience with the Apple Pay app found on iPhone devices. Apart from a minimalist design, the card offered a 3 percent cashback on purchases made on Apple Store, T-Mobile, Walgreens/Duane Reade, and Uber. But during its earnings call today, the company revealed a new program that allows users to purchase or upgrade to a new iPhone much faster.
With the new program, Apple Card holders can make an iPhone purchase with an interest-free, 24-month financing option. The card also entitles them to the cashback they can get from their purchase at Apple Store.
If you do not have an Apple Card, you can take advantage of the same offer through Apple’s iPhone Upgrade Program. With this option, you don’t need to pay for a new iPhone upfront.
Lastly, you can also trade-in your old iPhone for a new one and get a discount on your purchase. This option is available at Apple Store, where you can pay a lot less on your new iPhone.
As pointed out by CFO Luca Maestri, this option seems to be the one that customers prefer using. There has been a growth of over five times in iPhone trade-ins compared to last year.
By making the process of buying a new iPhone a lot easier, Apple is getting close to its “iPhone subscription” program that has since been talked about for years. It also coincides with CEO Tim Cook’s recent comment about such service:
“We’re cognizant that there are lots of users out there that want a sort of a recurring payment like that and the receipt of new products on some sort of standard kind of basis, and we’re committed to make that easier to do than perhaps it is today.”
Although the service has not yet been launched, Cook’s statement could hold much bearing for a program that allowed users to pay a monthly price to get their hands on the latest iPhone. If enough people are willing to do this subscription service, it definitely won’t be far from becoming a reality.