Apple Card Carrier required for Apple Card financing on iPhone starting in August

[russell_314]

Well, it looks like I won’t be buying the iPhone 15 because this is how I purchase an iPhone. I don’t want one that’s linked to a carrier. If wanted that, I would just go to my carrier because I can get a better deal.


Source

Apple to discontinue Apple Card financing for iPhones bought without a carrier connection - 9to5Mac

Apple is making a major change to its Apple Card Monthly Installment purchase option for iPhone buyers. Starting in August,...

9to5mac.com

 

[jahall05]

I’m not sure I’ll be upgrading this Fall. With this kind of asinine change, I might not even keep buying iPhones honestly. I can get 0% financing on basically ANY Android phone from Samsung/Google/Motorola at this point.

 

[Apple_Robert]

Buy outright with Apple Card and you get SIM free as usual and 3% cash back. Problem solved.

 

[jahall05]

Buy outright with Apple Card and you get SIM free as usual and 3% cash back. Problem solved.

Problem not solved. You would then pay interest on the purchase unless you pay the entire balance off at once.

 

[Apple_Robert]

Problem not solved. You would then pay interest on the purchase unless you pay the entire balance off at once.

I always pay in full. If someone can’t do that with an iPhone, they probably shouldnt be buying.

 

[chrfr]

I always pay in full. If someone can’t do that with an iPhone, they probably shouldnt be buying.

I’d rather take the free loan and keep my money somewhere where it’s earning me interest.

 

[BigMcGuire]

I got my last 2 iPhones through the Apple Card - 0% interest... unlocked. The article comments seem to question whether or not it'll be unlocked despite this happening so one can hope.

I don't need to upgrade (I got the 14 PM) and if I'm unable to get an unlocked phone through 0% interest Apple Card payment plans then that'll definitely impact my choice to get a 15 or 16 with the Apple Card.

The CitizensOne thing has been working pretty well for my wife/mother in law tho. So <shrug>.

 

[russell_314]

I always pay in full. If someone can’t do that with an iPhone, they probably shouldnt be buying.

I don’t agree with this. The iPhone Pro Max is $1100 - $1600. While I agree that people should budget better, not everyone can come up with $1500. Most people in the USA buy an iPhone or other flagship phone with carrier financing then get locked into overpriced carrier fees. Apple Card financing allowed people to not get locked into these overpriced carrier fees and still get an iPhone. I feel like saying if you can’t afford an iPhone, then you shouldn’t buy one, fuels the stereotype attached to Apple that it’s “not for the poors”.

I think this is predatory of Apple because it’s targeting people who want to save money on a prepaid phone service like straight talk or Walmart family mobile but now if they want the latest iPhone will likely pay more for a carrier plan from Verizon or AT&T.

None of this really personally a
effects me because I’m on Verizon but I don’t like it when companies do something to make it more difficult for people in worse financial shape. Yeah I know if you’re in not so good financial shape you probably shouldn’t be buying a new iPhone but that’s not the reality in the USA. Maybe another countries it is but not here.

I got my last 2 iPhones through the Apple Card - 0% interest... unlocked. The article comments seem to question whether or not it'll be unlocked despite this happening so one can hope.

I don't need to upgrade (I got the 14 PM) and if I'm unable to get an unlocked phone through 0% interest Apple Card payment plans then that'll definitely impact my choice to get a 15 or 16 with the Apple Card.

The CitizensOne thing has been working pretty well for my wife/mother in law tho. So <shrug>.

If you buy an iPhone linked to a carrier, regardless of what they’ll tell you it is locked to that carrier. In order to get it unlocked you have to keep it with that carrier for a period of time. It’s not a long period of time, maybe 60 days but it is carrier locked.

You could do something like keep it on the cheapest plan for a few months, just to get it unlocked, but I couldn’t imagine the headache that would be over the phone to make that happen. I spent hours on the phone over three days just to get Verizon to fix my Apple one plan so I suspect this would be a bigger undertaking.

To be clear, I’m not against carriers requiring the phone be attached to them if they are financing it for zero interest. I mean why would they want people to go somewhere else while they’re helping them get a phone so that’s reasonable. I just don’t understand why Apple would do this because I don’t see how it benefits them. I wonder if carriers are financially compensating Apple to do this. I still wouldn’t like it but that would make more sense.

 

[russell_314]

I’m not sure I’ll be upgrading this Fall. With this kind of asinine change, I might not even keep buying iPhones honestly. I can get 0% financing on basically ANY Android phone from Samsung/Google/Motorola at this point.

Are you getting this financing from a carrier or the phone manufacturer like Samsung or Google? You can get interest free financing from phone carriers on an iPhone but you were attached to the carrier for the length of time you’re financing it.

I know Google will do interest free financing on some of the products but I don’t know if they will do it on an unlocked Pixel phone for example. Maybe they will?

I don’t think this is enough to make me to go to android, but it’s annoying enough for me to hold off on an upgrade.

 

[Apple_Robert]

I don’t agree with this. The iPhone Pro Max is $1100 - $1600. While I agree that people should budget better, not everyone can come up with $1500. Most people in the USA buy an iPhone or other flagship phone with carrier financing then get locked into overpriced carrier fees. Apple Card financing allowed people to not get locked into these overpriced carrier fees and still get an iPhone. I feel like saying if you can’t afford an iPhone, then you shouldn’t buy one, fuels the stereotype attached to Apple that it’s “not for the poors”.

I think this is predatory of Apple because it’s targeting people who want to save money on a prepaid phone service like straight talk or Walmart family mobile but now if they want the latest iPhone will likely pay more for a carrier plan from Verizon or AT&T.

None of this really personally a
effects me because I’m on Verizon but I don’t like it when companies do something to make it more difficult for people in worse financial shape. Yeah I know if you’re in not so good financial shape you probably shouldn’t be buying a new iPhone but that’s not the reality in the USA. Maybe another countries it is but not here.


If you buy an iPhone linked to a carrier, regardless of what they’ll tell you it is locked to that carrier. In order to get it unlocked you have to keep it with that carrier for a period of time. It’s not a long period of time, maybe 60 days but it is carrier locked.

You could do something like keep it on the cheapest plan for a few months, just to get it unlocked, but I couldn’t imagine the headache that would be over the phone to make that happen. I spent hours on the phone over three days just to get Verizon to fix my Apple one plan so I suspect this would be a bigger undertaking.

To be clear, I’m not against carriers requiring the phone be attached to them if they are financing it for zero interest. I mean why would they want people to go somewhere else while they’re helping them get a phone so that’s reasonable. I just don’t understand why Apple would do this because I don’t see how it benefits them. I wonder if carriers are financially compensating Apple to do this. I still wouldn’t like it but that would make more sense.

If someone can't afford to pay outright for the iPhone they want, said person should consider buying an iPhone within their budget.

 

[russell_314]

If someone can't afford to pay outright for the iPhone they want, said person should consider buying an iPhone within their budget.

I got what you’re saying but that’s not the reality with people who make less than $50k a year in the USA. Even some of my friends that make 100k a year still don’t pay for their phone and one payment.

The only exception I can think of is my brother who recently got a base model iPhone 13 with one payment. No one else I know has bought any phone, android or iPhone with one payment. I understand that’s probably not good financial sense or whatever but that’s how things are in the USA for most people in lower income brackets. I’m sure some of those people have savings but they’re not going to pull out even $700 cash when they can do financing.

 

[jahall05]

I always pay in full. If someone can’t do that with an iPhone, they probably shouldnt be buying.

It’s better financially to take the money you’d pay for the phone and put it in high yield savings and let it grow rather than spend it on a depreciating iPhone. Especially since this used to be a 0% interest loan essentially.

 

[Apple_Robert]

It’s better financially to take the money you’d pay for the phone and put it in high yield savings and let it grow rather than spend it on a depreciating iPhone. Especially since this used to be a 0% interest loan essentially.

Given the small amount of money involved, the amount of interest earned from said amount would be very small and not worth my time to worry about.

 

[jahall05]

Are you getting this financing from a carrier or the phone manufacturer like Samsung or Google? You can get interest free financing from phone carriers on an iPhone but you were attached to the carrier for the length of time you’re financing it.

I know Google will do interest free financing on some of the products but I don’t know if they will do it on an unlocked Pixel phone for example. Maybe they will?

I don’t think this is enough to make me to go to android, but it’s annoying enough for me to hold off on an upgrade.

They do through Synchrony bank. I have an account. It’s interest free for the term as well.

https://store.google.com/category/financing?hl=en-US

 

[jahall05]

Given the small amount of money involved, the amount of interest earned from said amount would be very small and not worth my time.

Which is fine, but you gave financial advice and so did I. You are backing Apple on a poor decision that locks people out of upgrading their devices or purchasing new devices if they are being smart and using a lower cost wireless option.

 

[Apple_Robert]

Which is fine, but you gave financial advice and so did I. You are backing Apple on a poor decision that locks people out of upgrading their devices or purchasing new devices if they are being smart and using a lower cost wireless option.

I didn't back Apple. I simply stated pay the amount owed in full.

Griping because Apple didn't continue a perk they didn't owe anyone in the first place is nothing but entitlement mentality.

 

[splifingate]

It’s better financially to take the money you’d pay for the phone and put it in high yield savings and let it grow rather than spend it on a depreciating iPhone. Especially since this used to be a 0% interest loan essentially.

In that, I would say that it's probably not a wise choice to be playing with dimes when one can only juggle nickels

 

[dukebound85]

Problem not solved. You would then pay interest on the purchase unless you pay the entire balance off at once.

which is how one should always treat purchases on a credit card...

 

[dukebound85]

I don’t agree with this. The iPhone Pro Max is $1100 - $1600. While I agree that people should budget better, not everyone can come up with $1500.

Then they can't afford the phone. But hey, people can earn lessons the hard way.

 

[dukebound85]

It’s better financially to take the money you’d pay for the phone and put it in high yield savings and let it grow rather than spend it on a depreciating iPhone. Especially since this used to be a 0% interest loan essentially.

Not really. How much interest are you making in a volatile HYSA? $50 give or take over a year? all while carrying a balance on credit cards that will penalize you greatly for any mishap

When the majority of people can't come up with 1000 for emergencies, the aspect of people playing "games" with credit cards to eek out benefits is disingenuous

 

[russell_314]

Then they can't afford the phone. But hey, people can earn lessons the hard way.

As I said, before, I dislike like the attitude that "the iPhone isn't for the poors". This attitude just gives fuel to those who don't like Apple products because they feel it's a status symbol for stuck up rich people. This could be farther from the truth, but it's a stereotype that refuses to die.

It's not like this change is going to help those people who don't have the cash all at once. They're not going to say oh no I guess I won't buy an iPhone this year. Most of those people will just be pushed into a carrier lock in and end up paying more. The other alternative is they will stick with their prepaid phone company and finance it through them at an outrageous interest rate. Either way this change hurts the consumer.

Not really. How much interest are you making in a volatile HYSA? $50 give or take over a year? all while carrying a balance on credit cards that will penalize you greatly for any mishap

When the majority of people can't come up with 1000 for emergencies, the aspect of people playing "games" with credit cards to eek out benefits is disingenuous

I don't know why you think it's somehow disingenuous to use credit cards for benefits. Sure I'm not going to get rich on the cash back from credit cards but a few hundred bucks extra in my pocket is still a few hundred dollars. I agree it's not for someone that doesn't have good impulse control or doesn't want to manage different accounts though.

 

[dukebound85]

As I said, before, I dislike like the attitude that "the iPhone isn't for the poors". This attitude just gives fuel to those who don't like Apple products because they feel it's a status symbol for stuck up rich people. This could be farther from the truth, but it's a stereotype that refuses to die.

It's not like this change is going to help those people who don't have the cash all at once. They're not going to say oh no I guess I won't buy an iPhone this year. Most of those people will just be pushed into a carrier lock in and end up paying more. The other alternative is they will stick with their prepaid phone company and finance it through them at an outrageous interest rate. Either way this change hurts the consumer.


I don't know why you think it's somehow disingenuous to use credit cards for benefits. Sure I'm not going to get rich on the cash back from credit cards but a few hundred bucks extra in my pocket is still a few hundred dollars. I agree it's not for someone that doesn't have good impulse control or doesn't want to manage different accounts though.

Dislike all you want, the math doesn't care. But by all means, you do you. People have very poor financial education and the resultant behavior benefits shareholders of stocks as a result. I am not complaining.

I, for one, live by the principle of not buying things I can not afford.

 

[FreakinEurekan]

I’ve done the math on Apple Card free financing vs. other purchase options a couple of times in the past, and I’ve always found a better deal elsewhere for iPhone. I did once buy one direct from Apple using a Friends & Family employee discount… but with the discount, you don’t qualify for the free financing offer either so that was just paid off when the bill came due. But I did get the 3% cash bonus using Apple Card 👍 along with I think 15% off? Don’t remember exactly but it was well worth the discount, even if I’d had to pay “some” interest.

FWIW I agree with the sentiment about “Buy what you can afford.” It’s very seldom that someone is going to go buy an iPhone with no notice at all… I typically know about a major purchase like that months in advance. So I use a financial planning method I like to call “Saving up for it.”

 

[macsound1]

The adage that rang true for me was, “The longer you have your money, the longer you make interest on it. The longer they have your money, the longer they’ll make interest on it.”

Sure maybe buying an iPhone up front for $1500 isn’t a big deal, but assuming your a person that does this means your probably also paying your water bill 15 days early, paying your car insurance in one year chunks, etc. meaning it’s not just the $1500 iPhone money you’re losing out on 4% savings account interest, it’s your entire life.

If there’s a 0% plan to pay for something, it’s wise to use it, because saving your pennies is how you cultivate wealth, not by cashing your paycheck and stashing it under the mattress.

 

[Sheepish-Lord]

If anything in my life has 0% interest, doesn’t have an insane term limit, and is convenient for me then I’m probably going to do it ha.

Now if you got an iPhone with 0% interest but for 8yrs and no option to pay it off early then nah.