Apple Card installment plan for Macs, HomePods arriving within weeks

AppleInsider

Apple is preparing to expand the number of products customers can buy in monthly installments using Apple Card, with purchases of iPads, MacBooks, and AirPods expected to be offered under the existing scheme.

Currently, Apple Card customers are able to buy an iPhone from Apple, using an interest-free payment plan linked to the credit card. Under new proposals, Apple will be making it possible for other products it sells to be acquired under similar payment plans, again via Apple Card.

Expected to arrive in the coming weeks, according to people who know about the plan speaking to Bloomberg. The range of products available will allegedly cover a wide array of devices, including the Pro Display XDR for the Mac Pro as well as Macs and iPads.

Though the big-ticket items will apparently be provided on a 12-month interest-free payment plan, other products will be available on shorter terms, with AirPods, Apple TV, and HomePod offered on a six-month plan, again with no interest. It is unknown if Apple will offer anything on a 24-month plan, as it currently does for iPhone purchases.

As an extension to the existing Apple Card feature, the purchase is managed through the Wallet app, with purchases most likely to be made via the Apple Store app as well as via Apple retail outlets. Given the iPhone version offers 3% cash back on purchases to Apple Card cardholders, it is probable that buyers of other items will benefit from the same bonus.

An opening up of the installment plan to other Apple products has been on the cards for a while, with CEO Tim Cook hinting at an expansion during the April conference call with analysts.

Providing such an installment plan will be beneficial to Apple and partner Goldman Sachs, in tempting more US-based customers to sign up for the credit facility.

For consumers, it will provide a way to more easily acquire other Apple products, without needing a hefty outlay. Apple has already assisted Apple Card customers by extending a payment deferment program through until June, helping those who are enduring financial hardship during the ongoing coronavirus pandemic.

Xed

Nice! If I can buy it on credit without interest then sign me up. Better to pay monthly than all at once so my money can work for me.

wilsonium

I wonder if the relationship with Barclay will be ending. Just before Apple Card came out I got the Barclay Card and do not want to get another card if this is the path. 

gmgravytrain

That's a great idea to pull consumers into the Mac ecosystem.  Make it as painless as possible, especially in times like this when many people have lost their jobs.  Search for employment using your brand new Mac.  Woohoo!  Go, Apple!

emoeller

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate.....

Xed

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

jeffythequick

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

I think the hope is you get 3% back AND zero interest with the installment plan, rather than the 3% rebate and the standard (14%?  21%?) payment plan.

macgui

jeffythequick said:

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

I think the hope is you get 3% back AND zero interest with the installment plan, rather than the 3% rebate and the standard (14%?  21%?) payment plan.

Yes, Xed missed the point completely.

AI said:
Given the iPhone version offers 3% cash back on purchases to Apple Card cardholders, it is probable that buyers of other items will benefit from the same bonus.

Here's hoping!

mr lizard

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

You won’t be paying interest on the card. The article is about Apple offering 0%. So, 0% on the purchase + 3% of the purchase price received in cash back equates to a -3% interest rate. 

lkrupp

Expanding the installment plan to MacBooks but not iMacs, Mac Minis. This is a clear signal that Apple is abandoning the desktop or considers the desktop unworthy of support and innovation.The Mac Pro is simply out of reach for most of us who still want a desktop Mac. The desktop is dead at Apple. 

GeorgeBMac

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

[Deleted User]

lkrupp said:

Expanding the installment plan to MacBooks but not iMacs, Mac Minis. This is a clear signal that Apple is abandoning the desktop or considers the desktop unworthy of support and innovation.The Mac Pro is simply out of reach for most of us who still want a desktop Mac. The desktop is dead at Apple. 

The Bloomberg article just said Macs and didn’t limit it to MacBook Pros, that was AppleInsider’s spin on it.

Xed

mr lizard said:

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

You won’t be paying interest on the card. The article is about Apple offering 0%. So, 0% on the purchase + 3% of the purchase price received in cash back equates to a -3% interest rate. 

0% is for the installment plan of the purchase, like when you use the iPhone Upgrade Program, but if you make payments with your Apple Card (or any credit card) and keep a balance outside the grade period you are subject to those interest rates.

[Deleted User]

Xed said:

mr lizard said:

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

You won’t be paying interest on the card. The article is about Apple offering 0%. So, 0% on the purchase + 3% of the purchase price received in cash back equates to a -3% interest rate. 

0% is for the installment plan of the purchase, like when you use the iPhone Upgrade Program, but if you make payments with your Apple Card (or any credit card) and keep a balance outside the grade period you are subject to those interest rates.

I feel like it was pretty clear that emoeller is assuming that you pay your installment on Apple Card and pay it off the balance monthly. Thus getting a 3% discount on your whatever you are buying from Apple. 

[Deleted User]

GeorgeBMac said:

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

Your loser proposition is partially accurate. If I have 1k to spend on a  Mac Book Air and the extra cash to pay the monthly installments over 12-24 months then I’d come out better interest wise paying installments. But the difference between paying up front and then redirecting the payment amount to savings over the next 12-24 months and holding your one 1k and making monthly payments over 12-24 months ends up being fairly small. If I don’t have the 1k to pay up front and but have extra cash monthly over 12-24 months then you  wouldn’t come out better for it interest wise and you’d  have a liability should my monthly income get impacted. 

Xed

Happy_Noodle_Boy said:

Xed said:

mr lizard said:

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

You won’t be paying interest on the card. The article is about Apple offering 0%. So, 0% on the purchase + 3% of the purchase price received in cash back equates to a -3% interest rate. 

0% is for the installment plan of the purchase, like when you use the iPhone Upgrade Program, but if you make payments with your Apple Card (or any credit card) and keep a balance outside the grade period you are subject to those interest rates.

I feel like it was pretty clear that emoeller is assuming that you pay your installment on Apple Card and pay it off the balance monthly. Thus getting a 3% discount on your whatever you are buying from Apple. 

If that were the case then he wouldn't have stated "This is actually better than a zero interest card" because the interest rate is a null factor if you pay off your statement balance monthly.

Xed

Happy_Noodle_Boy said:

GeorgeBMac said:

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

Your loser proposition is partially accurate. If I have 1k to spend on a  Mac Book Air and the extra cash to pay the monthly installments over 12-24 months then I’d come out better interest wise paying installments. But the difference between paying up front and then redirecting the payment amount to savings over the next 12-24 months and holding your one 1k and making monthly payments over 12-24 months ends up being fairly small. If I don’t have the 1k to pay up front and but have extra cash monthly over 12-24 months then you  wouldn’t come out better for it interest wise and you’d  have a liability should my monthly income get impacted. 

As you say, you "come out better[…]  paying installments." Even if you have the cash to buy as many Macs as you desire, the smart move is to spread out the payments as much as possible without interest so you can let your money work for you. I utilize the iPhone Upgrade program—not because I can't afford to buy an iPhone outright, but because paying for the phone and AC+ over two years means the iPhone will likely pay for itself by having kept those funds working for me. The 3% back on my Barclay Card is just a nice bonus that helps makes it even better.

[Deleted User]

Xed said:

Happy_Noodle_Boy said:

Xed said:

mr lizard said:

Xed said:

emoeller said:

This is actually better than a zero interest card for Apple Products since it returns 3% back on the value of the purchase.   Essentially a -3% interest rate…..

If you need a 0% interest card because you'll be carrying a balance then the 3% back absolutely isn't better than the interest you'll be paying on the card. If you're not carrying a balance than the interest rate you pay is a moot point.

You won’t be paying interest on the card. The article is about Apple offering 0%. So, 0% on the purchase + 3% of the purchase price received in cash back equates to a -3% interest rate. 

0% is for the installment plan of the purchase, like when you use the iPhone Upgrade Program, but if you make payments with your Apple Card (or any credit card) and keep a balance outside the grade period you are subject to those interest rates.

I feel like it was pretty clear that emoeller is assuming that you pay your installment on Apple Card and pay it off the balance monthly. Thus getting a 3% discount on your whatever you are buying from Apple. 

If that were the case then he wouldn't have stated "This is actually better than a zero interest card" because the interest rate is a null factor if you pay off your statement balance monthly.

I think I see where the issue is. You are looking at this a credit card offer a 0% purchase. That isn’t how Apple Card handles its 0% financing or it isn’t how it handles iPhones financing at the moment. 

[Deleted User]

Xed said:

Happy_Noodle_Boy said:

GeorgeBMac said:

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

Your loser proposition is partially accurate. If I have 1k to spend on a  Mac Book Air and the extra cash to pay the monthly installments over 12-24 months then I’d come out better interest wise paying installments. But the difference between paying up front and then redirecting the payment amount to savings over the next 12-24 months and holding your one 1k and making monthly payments over 12-24 months ends up being fairly small. If I don’t have the 1k to pay up front and but have extra cash monthly over 12-24 months then you  wouldn’t come out better for it interest wise and you’d  have a liability should my monthly income get impacted. 

You say, you "come out better[…]  paying installments." Even if you have the cash to buy as many Macs as you desire, the smart move is to spread out the payments as much as possible without interest so you can let your money work for you. I utilize the iPhone Upgrade program—not because I can't afford to buy an iPhone outright, but because paying for the phone and AC+ over two years means the iPhone will likely pay for itself by having kept those funds working for me. The 3% back on my Barclay Card is just a nice bonus that helps makes it even better.

You are literally repeating what I said. 

Xed

Happy_Noodle_Boy said:

Xed said:

Happy_Noodle_Boy said:

GeorgeBMac said:

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

Your loser proposition is partially accurate. If I have 1k to spend on a  Mac Book Air and the extra cash to pay the monthly installments over 12-24 months then I’d come out better interest wise paying installments. But the difference between paying up front and then redirecting the payment amount to savings over the next 12-24 months and holding your one 1k and making monthly payments over 12-24 months ends up being fairly small. If I don’t have the 1k to pay up front and but have extra cash monthly over 12-24 months then you  wouldn’t come out better for it interest wise and you’d  have a liability should my monthly income get impacted. 

You say, you "come out better[…]  paying installments." Even if you have the cash to buy as many Macs as you desire, the smart move is to spread out the payments as much as possible without interest so you can let your money work for you. I utilize the iPhone Upgrade program—not because I can't afford to buy an iPhone outright, but because paying for the phone and AC+ over two years means the iPhone will likely pay for itself by having kept those funds working for me. The 3% back on my Barclay Card is just a nice bonus that helps makes it even better.

You are literally repeating what I said. 

Yes. I'm agreeing with you and building upon your comment. Maybe my edit to start my comment with "As…" will make it more clear.

[Deleted User]

Xed said:

Happy_Noodle_Boy said:

Xed said:

Happy_Noodle_Boy said:

GeorgeBMac said:

With interest rates at near zero levels - making the future value (or premium) of money nearly worthless -- this is a smart move by Apple:

They can offer their customers an easy and affordable way to acquire products with little or no cost to themselves.  

That's a win-win for Apple and its customers.   The losers are those who saved their money and now earn no interest on it.  It is essentially another wealth transfer scheme that Apple is RIGHTLY taking advantage of (similar to Apple taking advantage of low tax rates when they are offered).

Smart move Tim!

Your loser proposition is partially accurate. If I have 1k to spend on a  Mac Book Air and the extra cash to pay the monthly installments over 12-24 months then I’d come out better interest wise paying installments. But the difference between paying up front and then redirecting the payment amount to savings over the next 12-24 months and holding your one 1k and making monthly payments over 12-24 months ends up being fairly small. If I don’t have the 1k to pay up front and but have extra cash monthly over 12-24 months then you  wouldn’t come out better for it interest wise and you’d  have a liability should my monthly income get impacted. 

You say, you "come out better[…]  paying installments." Even if you have the cash to buy as many Macs as you desire, the smart move is to spread out the payments as much as possible without interest so you can let your money work for you. I utilize the iPhone Upgrade program—not because I can't afford to buy an iPhone outright, but because paying for the phone and AC+ over two years means the iPhone will likely pay for itself by having kept those funds working for me. The 3% back on my Barclay Card is just a nice bonus that helps makes it even better.

You are literally repeating what I said. 

Yes. I'm agreeing with you and building upon your comment. Maybe my edit to start my comment with "As…" will make it more clear.

Yes that does a great deal to clarify. I’ll add that my comment is only when it comes to interest earned on money that remains in savings. There other factors that I think make paying over time less optimal than paying at once. 

1. Of you are are taking out an installment loan then you should keep the capital to pay it off in a no/low risk investment in the event you experience a loss of income and need to default to savings to pay your installments. If you pay at once you can put the money in a higher risk account as you are less likely to need it. In that case you would likely make more paying in advance. 

2. Hardware will depreciate in value faster than you pay it off. So if you need the cash and sell it you will still have a payment to make. If you buy outright and have to sell it you will have money that you can use. 

Looking simple at money in the bank earning interest vs money spent outright is looking at a bubble and finances are far more complicated than that. 

This also all ignores the psychology of the whole interest free loans and why they set people up to fail.