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Apple CEO Tim Cook said the company is "very happy" with the progress made in both its hardware financing and trade-in options.
The chief executive made the comments during the company's third quarter earnings call with investors, first responding to a question from analyst Katy Huberty.
Cook referenced the company's June rollout of interest-free financing offers, and added that the payment option complements the company's existing trade-in programs.
On trade-ins, Cook said the option is becoming a more common "trend," and added that it's terrific because it's great for the environment and acts as a subsidy.
Taken together, Cook said that trade-in and interest-free financing both make its devices "super affordable," and that Apple is "happy with what [they're] seeing in that regard."
Cook added that both programs are doing well "in a number of geographies," including China — whether a large portion of the installed user base still uses pre-iPhone X devices. The Apple executive positioned those options as a way to get users in the region, and elsewhere, to upgrade to newer devices.
Malcolm Owen
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7 Comments
“ interest-free financing both make its devices ‘super affordable,‘“
sorry - 0% interest doesn’t make it affordable. It just makes financing less expensive.
Their trade in offer is awful. They say “you may receive part of your refund in Apple store credit”.
That is a lie. I received ALL my refund in Apple store credit...all $360 worth of it. So many gift cards that I can’t use them all at once for an online purchase,
Been an Apple customer going back to 2003-ish and my first Macbook. First time Apple has made the purchase of one of their products feel slimy.
Not so affordable when you get store credit.
This is a true statement for those folks who've bought into the notion that your entire life is one big subscription. It's no different than auto dealers who always lead with "how much do you want to pay per month?" before you've even said how much you are willing to spend. As long as you don't have any interruptions to your revenue stream, no problem, but if you do, your entire life (of consumer product) can quickly evaporate.
Not a big deal for those who have reliable cash flow. In fact, Apple's production of the latest iPhone SE selling at $399 truly provides a perfect alternative for those who want to avoid a long payment tail post-acquisition.
DO NOT TRADE IN YOUR IPHONE!
Seriously, don’t do it.