Apple took the center stage in the premium flagship segment when it launched the iPhone X. The new iPhone marked a paradigm shift when it comes to the design language and the device also came with features that were new to the iPhone lineup. Apart from the bezel-less AMOLED display, Apple did away with the TouchID feature and instead introduced FaceID facial recognition feature.
Apple shares have tanked slightly after it hit an all-time high in January. The analysts have already undercut the price target on Apple since it didn’t seem to meet the rather lofty expectations. Apple is apparently in talks with Goldman Sachs with regards to a possible financing scheme to buy Apple products. The talks are still in early stages and it is anything but premature to comment on the feasibility of the program. That being said, the discussions are mostly centered around Goldman Sachs taking over some responsibility for the iPhone upgrade program.
The upgrade program offers a new iPhone every year bundled along with the AppleCare+. As of now, the patrons who have signed up for this program can trade in their existing iPhone model for a newer one after completing 12 monthly installments. When the program was first launched in 2015, the financial assistance was extended by Citizens Financial Group. It is speculated that the iPhone upgrade program was started to fill the void created by network carriers after they reduced the subsidies offered on iPhone. The installments will be offered as part of a loan and will not necessarily require credit cards.
Goldman Sachs stands to benefit by extending its offering and starting out with the consumer lending. The investment giant mostly services corporate clients and this deal might help them grow their consumer bank. That being said, Apple and even other consumer electronics makers are already offering 0% interest EMI schemes by partnering with both offline and online retail channels. Meanwhile, it is interesting to see how Apple plans to attract the next wave of customers and add them to their fold.