Apple now offers installment payments on iPhones, MacBooks in China

Posted:
in General Discussion edited January 2014
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.
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Comments

  • Reply 1 of 28
    apple ][apple ][ Posts: 9,233member


    I'm sure that this is great news for any Chinese kids who were thinking about selling their kidneys. I wonder how the original kidney seller feels about their decision today? What a dumbass.image


     


    What would somebody have to give up to get a Mac Pro? Their left nut? image

  • Reply 2 of 28
    solipsismxsolipsismx Posts: 19,566member
    "Apple wrote:
    [" url="/t/155487/apple-now-offers-installment-payments-on-iphones-macbooks-in-china#post_2259719"]I'm sure that this is great news for any Chinese kids who were thinking about selling their kidneys. I wonder how the original kidney seller feels about their decision today? What a dumbass.:lol:

    What would somebody have to give up to get a Mac Pro? Their left nut? :D

    I don't find any of that funny.
  • Reply 3 of 28
    sflocalsflocal Posts: 5,728member
    "Apple wrote:
    [" url="/t/155487/apple-now-offers-installment-payments-on-iphones-macbooks-in-china#post_2259719"]I'm sure that this is great news for any Chinese kids who were thinking about selling their kidneys. I wonder how the original kidney seller feels about their decision today? What a dumbass.:lol:

    What would somebody have to give up to get a Mac Pro? Their left nut? :D

    I usually see past your sarcasm and humor, but even I think this just really bad taste. :(
  • Reply 4 of 28

    Quote:

    Originally Posted by Apple ][   View Post


    I'm sure that this is great news for any Chinese kids who were thinking about selling their kidneys. I wonder how the original kidney seller feels about their decision today? What a dumbass.image


     


    What would somebody have to give up to get a Mac Pro? Their left nut? image



     


     


    Not surprising, people say and do stupid things for an Apple product.

  • Reply 5 of 28
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by SolipsismX View Post





    I don't find any of that funny.


    And I think that humor can be found in any situation.

  • Reply 6 of 28
    apple ][apple ][ Posts: 9,233member


    In an update to that kidney story, the criminals behind it are probably regretting their role.


     


     


    Nine sentenced in Chinese kidney-for-iPad scheme


     



     


     


    http://www.theregister.co.uk/2012/11/30/chinese_kidney_for_ipad_sentencing/


  • Reply 7 of 28
    tundraboytundraboy Posts: 1,768member

    Quote:

    Originally Posted by Apple ][ View Post


    And I think that humor can be found in any situation.



     


    Okay go to Newtown, CT and do your stand up routine there.


     


    I mean how old are you, thirteen?

  • Reply 8 of 28
    flaneurflaneur Posts: 4,526member
    Creepy trashing of a thread. We could afford to lose a nut around here.

    [B]TS[/B], if you decide to clean up this mess, you have my vote for total suppression.
  • Reply 9 of 28
    solipsismxsolipsismx Posts: 19,566member
    "Apple wrote:
    [" url="/t/155487/apple-now-offers-installment-payments-on-iphones-macbooks-in-china#post_2259728"]And I think that humor can be found in any situation.

    Sure, but that doesn't mean all things are humorous.
  • Reply 10 of 28
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by tundraboy View Post


     


    Okay go to Newtown, CT and do your stand up routine there.


     


    I mean how old are you, thirteen?



    Newton, Schnewton, nobody died here. The two can hardly be compared. What that Chinese kid did was out of his own free will.

  • Reply 11 of 28
    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.
  • Reply 12 of 28
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by SolipsismX View Post





    Sure, but that doesn't mean all things are humorous.


    If you're saying that people have different tastes in humor, then I agree. 

  • Reply 13 of 28


    Originally Posted by Flaneur View Post

    We could afford to lose a nut around here.




    See, this was humor.

  • Reply 14 of 28
    tundraboytundraboy Posts: 1,768member


    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.

  • Reply 15 of 28
    chiachia Posts: 711member

    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.

  • Reply 16 of 28
    Well Done tundraboy!!!!!
  • Reply 17 of 28
    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
  • Reply 18 of 28
    flaneurflaneur Posts: 4,526member
    tundraboy wrote: »
    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).
  • Reply 19 of 28

    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.

  • Reply 20 of 28
    rayzrayz Posts: 814member

    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.

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