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Apple now offers installment payments on iPhones, MacBooks in China

post #1 of 19
Thread Starter 
Apple today introduced a new option for Chinese buyers of iPhones and MacBooks, allowing them to spread the cost of purchases ranging from from 300 yuan ($48) to 30,000 yuan ($4,800) over as long as two years.

Financing


The new installment payment plans require a China Merchants Bank Co. credit card, with fees ranging from zero percent for a three-month installment plan to 8.5 percent for a 24-month plan. The payment structure likely represents Apple's attempt at making its products, typically priced at a premium, more affordable for urban Chinese workers.

Bloomberg noted Wednesday that Apple fell from fourth to sixth place in China's smartphone market in the third quarter and now trails firms such as ZTE, Samsung, and Lenovo, whose smartphone offerings are more affordable than Apple's iPhone.

Industry observers have long held that a cheaper iPhone would give Apple control over the growing Chinese market, and the financing move may allow Apple to retain its typical profit margins and brand image while widening its base of potential buyers in what will soon become the world's largest market.

The iPhone 5, which hit the Chinese market last month, costs 5,288 yuan on Apple's site, or about six weeks' pay for the average urban worker. By comparison, handsets from competitors often cost less than 1,000 yuan.

Talk of a cheaper iPhone was prevalent in the tech media over the past week, with The Wall Street Journal saying Apple would be releasing a lower-cost model of its top revenue generator for China and other emerging markets.

Sales of other Apple products have demonstrated demand for the Cupertino company's devices, as the iPad mini debuted to "insatiable demand" in China last December. Apple has increased its focus on the country accordingly, with chief executive Tim Cook visiting China twice in the past 10 months, most recently meeting with China Mobile, the world's largest wireless carrier.
post #2 of 19
Creepy trashing of a thread. We could afford to lose a nut around here.

TS, if you decide to clean up this mess, you have my vote for total suppression.
post #3 of 19
No different from, say, a US buyer putting his/her purchase on a credit card and paying that off in installments.

Although, I'll bet the implied interest rate is lower than the typical arm and leg -- or should I say kid... nah, forget that -- that credit card companies charge here. Maybe Apple should do the same in all its markets, subcontracting it out to an organization such as, say GE Capital.
post #4 of 19
Originally Posted by Flaneur View Post
We could afford to lose a nut around here.


See, this was humor.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #5 of 19

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

 

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

 

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.


Edited by tundraboy - 1/16/13 at 9:47am
post #6 of 19
Quote:
Originally Posted by anantksundaram View Post
 Maybe Apple should do the same in all its markets, subcontracting it out to an organization such as, say GE Capital.

 

Well, they've been doing it in the UK for some time now, via Barclays Partner Finance:

 

Finance on the Apple Online Store - Apple Store (UK)

 

They were actually offering interest free purchases spread over ten months before Christmas.

 

It may also be a way of encouraging purchases within the emerging markets.

post #7 of 19
Well Done tundraboy!!!!!
post #8 of 19
Any article that references 3rd quarter numbers is a ploy to discredit Apple. The iPhone 5 came out in the 4th quarter, internationally. Apples and Oranges, pun intended
post #9 of 19
Quote:
Originally Posted by tundraboy View Post

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.

This is the best case I've seen made so far against a cheap Apple phone.

The problem I see with the 4 and 4S is the glass back. It just doesn't seem like a good material for kids, hard working people, people who have to be out in the elements, or on bicycles, etc. Maybe if they could do their usual high-class hardware look and feel on a polycarbonate back for the 4/4S, saving money by keeping the same internals, then sell it as a FaceTime and iMessage gateway, which might be big in China, then they could avoid the Netbook Syndrome (TM).
post #10 of 19
Quote:
Originally Posted by tundraboy View Post

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

 

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

 

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.

 

You do know that the USA is not the only 1st world country in the world? I mean, Japan, Germany, UK, France... all come to mind. You also understand - that for many in the USA a 200 dollar phone made in China is not a Premium item (Financially or Artistically)... It is like having a 15K Benz made in Mexico.

 

Also, people who buy an iPad are just people who do not have the talent or money to buy a real Apple computer. Why you see, all the "Creative" yet not very Talented Marketing people show up to the meets at work with iPads and all the Designers have Macs - we do the real work.

 

Dont get me wrong, iPads and iPhones have their place - but like I said - both Financially or Artistically they not much to brag about.

post #11 of 19
Quote:
Originally Posted by tundraboy View Post

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

 

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

 

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.

 

Well said.

post #12 of 19
Quote:
Originally Posted by anantksundaram View Post

Maybe Apple should do the same in all its markets, subcontracting it out to an organization such as, say GE Capital.

In a single-tier arrangement they can take advantage of both the profit margin and the default risk, arguably even bricking a device that is in default. In a real great scenario, they would even link everything back to an iTunes account to cut out the credit card companies altogether. Curious how the accounting works for this kind of thing though (if you don't do it through a subsidiary)-- are we back to subscription-based accounting?

But, reading the headline, I did have the sense that Apple is Desperate¡
post #13 of 19
Quote:
Originally Posted by agramonte View Post

People who buy an iPad are just people who do not have the talent or money to buy a real Apple computer. Why you see, all the "Creative" yet not very Talented Marketing people show up to the meets at work with iPads and all the Designers have Macs - we do the real work.

 

Dont get me wrong, iPads and iPhones have their place - but like I said - both Financially or Artistically they not much to brag about.

 

I fail to comprehend your sweeping and dismissive, narrow-minded hostility to the iPhone and iPad.

 

You don't seem to get that it's how you use a device and its software that matters, not whether it's a mainframe, PC or smartphone that matters.

 

A $5000 PC gaming rig used solely to play Crysis II is a toy.

 

A $500 dollar iPhone or iPad that helps a physician treat a patient at the bedside or in the field, that's real work.

 

I actually pity you that you feel real work amounts to designing something using a Mac.

 

People in education, healthcare, transport etc are using their iPads and iPhones to accomplish their  work, real work that makes a difference to life, or saves the life itself.

post #14 of 19
Quote:
Originally Posted by aaarrrgggh View Post

But, reading the headline, I did have the sense that Apple is Desperate¡

Not really.

Apple wants to sell a $600 phone in China. (and everywhere really)

Rather than making a cheaper, lower quality phone... Apple's payment plan is the next best thing.

This also applies to Macbooks... how is that different than what Dell does?

post #15 of 19
Quote:
Originally Posted by agramonte View Post

 

You do know that the USA is not the only 1st world country in the world? I mean, Japan, Germany, UK, France... all come to mind. You also understand - that for many in the USA a 200 dollar phone made in China is not a Premium item (Financially or Artistically)... It is like having a 15K Benz made in Mexico.

 

Also, people who buy an iPad are just people who do not have the talent or money to buy a real Apple computer. Why you see, all the "Creative" yet not very Talented Marketing people show up to the meets at work with iPads and all the Designers have Macs - we do the real work.

 

Dont get me wrong, iPads and iPhones have their place - but like I said - both Financially or Artistically they not much to brag about.

 

Good thing you have a high opinion of yourself because I would imagine not many others do.

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools." Douglas Adams

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"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools." Douglas Adams

Reply
post #16 of 19
Quote:
Originally Posted by anantksundaram View Post

No different from, say, a US buyer putting his/her purchase on a credit card and paying that off in installments.

Although, I'll bet the implied interest rate is lower than the typical arm and leg -- or should I say kid... nah, forget that -- that credit card companies charge here. Maybe Apple should do the same in all its markets, subcontracting it out to an organization such as, say GE Capital.

Or what one can do at Tmobile.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #17 of 19
Quote:
Originally Posted by tundraboy View Post

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.

Except you're forgetting one thing. Those same people will have spent years investing in Android's ecosystem (no, all apps are not free) same as many here who'll have a iPhone for the rest of their lives regardless of what the competition may bring. The website dailysteals.com is having a sale of refurbished phones for VZW, both Android and iPhones (4&4S) and the first phone to sell out was the SGS lll.
Edited by dasanman69 - 1/16/13 at 4:18pm
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #18 of 19
Quote:
Originally Posted by tundraboy View Post

As I predicted long ago, Android will be the Mobile OS of choice in the third world.  Apple is playing a long game here, they will never join the race to the unprofitable bottom.  Instead they will maintain a presence in the third world, sell at premium prices to the most prosperous customers, keep their status as the aspirational brand, and sit and wait until incomes start rising and the customer goes to them rather than them going to the customer.

 

To people who are recommending that Apple sell a cheap iPhone alongside the premium iPhone: Exactly what features would this cheap iPhone have that would a) not make it too gimped that it becomes a joke that nobody buys and b) not make it too similar to the premium iPhone to the point of killing the premium market?  The Windows PC market has already demonstrated that in an industry where software is the key differentiating feature, there is no viable premium segment if the economy segment features the exact same software.  It has also been shown that any attempt to introduce a gimped low end model, cough, IBM PC Jr., Intel 386 SX, netbooks, cough, is doomed to failure.  (Windows RT will probably join that list soon)

 

Now just because Apple wants to maintain its aspirational halo doesn't mean that they should act haughty and snobbish and not try to make their product more attainable, hence the installment purchase option which would be attractive to a lot of people who are just on the cusp of being able to afford an iPhone or iPad.

 

I'm one who sees Apple selling a low cost iPhone with stripped features, and I will counter the arguments you've made with this news headline As Netbooks Crash and Burn, Amazon's Best Selling Laptop is a Chromebook

 

A Chromebook if you don't know, is a striped down laptop that only runs a web browser. By your logic, this device shouldn't sell at all, however it is selling very well. The reason it sells its, well, simplicity. It is what netbooks should have been. Netbooks run full featured OS' but lack the hardware to take advantage of all the features. So when a user tries to attempt a task and they realize their device isn't capable of accomplishing it, they feel let down.

 

If Apple can offer an iPhone with simple features, that is elegant, easy to use, and more importantly, stays within the confines of it's capabilities, then people who have flip phones or Android 2.x devices are going to be easily enticed.

post #19 of 19
Quote:
Originally Posted by Realistic View Post

Good thing you have a high opinion of yourself because I would imagine not many others do.

Ya- those "creative people". You know- the ones who don't do any of the work.

Bottom line: Joan Halloway, Roger Sterling, Bert Cooper, Peter Campbell, etc wouldn't have a job if it weren't for Don Draper. Don can make it without them, because those people are a dime a dozen. They can't make it without Don.
Don't get it twisted.

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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