Apple wants to make it easier to afford pricey products, in talks for new financing deal with Goldman Sachs

Apple and Goldman Sachs are in conversations, which if fruitful, could result in alternate financing options for Apple buyers across the board in the future.

According to a report from The Wall Street Journal on Wednesday, the finance company is looking to expand its arrangements with Apple. Instead of just assisting Apple with debt sale and other financial matters, the company is looking to offer loans straight from Goldman Sachs, instead of a high-interest credit card.

Goldman Sachs has been looking to grow Marcus, its new consumer lending service. Marcus is an online service that offers loans at around 12 percent interest to shoppers during a checkout process — instead of customers seeking the service out.

Present consumer offerings through Marcus by invitation include no-fee fixed-rate loans from $3,500 and up. It also offers consumer savings, with yields of 1.5 percent — but Apple is unlikely to involve itself in the latter.

Apple's current iPhone Upgrade Program is funded through Citizens Financial Group and is in essence a zero-interest loan. Other credit options available through Apple are at higher interest rates, from 14.9 percent all the way up to 26 percent.

It isn't clear what effect, if any, a deal with Goldman Sachs would have with Apple's arrangement with Citizens Financial Group.

The Wall Street Journal believes that the talks "are continuing and could still fall apart." Neither Apple nor Goldman Sachs have commented on the matter.

35 Comments

MacPro 18 Years · 19845 comments

About 6 years ago

I would have thought Apple could have simply set up their own bank division these days and not involve anyone else.

Rayz2016 8 Years · 6957 comments

MacPro said:

I would have thought Apple could have simply set up their own bank division these days and not involve anyone else.

True, but dealing with defaulters is an ugly business.

airnerd 13 Years · 688 comments

It would seem more "Apple-like" to instead just price the financing cost upfront to keep it somewhat hidden. Me personally, and this may just be me, would prefer to pay $49 up front as opposed to being told "your item is $899 and your financing will be at 6% APR". Bake the payment-plan option price into the purchase price and that seems more palatable.

I still would wait to buy it outright, but I hate to see Apple look like a payday loan system or start getting into auto dealership type "now with 0% APR for 60 months with approved credit" type garbage.

Rayz2016 said:

MacPro said:

I would have thought Apple could have simply set up their own bank division these days and not involve anyone else.

True, but dealing with defaulters is an ugly business.

Or setting fake accounts for commissions ... oh wait we have Wells Fargo for that already ;)

JFC_PA 7 Years · 947 comments

airnerd said:

It would seem more "Apple-like" to instead just price the financing cost upfront to keep it somewhat hidden. Me personally, and this may just be me, would prefer to pay $49 up front as opposed to being told "your item is $899 and your financing will be at 6% APR". Bake the payment-plan option price into the purchase price and that seems more palatable.

I still would wait to buy it outright, but I hate to see Apple look like a payday loan system or start getting into auto dealership type "now with 0% APR for 60 months with approved credit" type garbage.

Or it could simply be an expansion of their current iPhone Upgrade Program: 0% lease to own or swap.