Apple probing Goldman Sachs to finance the purchase of new iPhones

Apple probing Goldman Sachs to finance the purchase of new iPhones
Apple has been working with Goldman Sachs for its investment banking needs for a while now, but the latest rumor pegs the duo as taking the financial relationship to a whole new lеvel. Wall Street's renowned investment bankers are looking to score a big client for their budding commercial banking push, and it seems that Apple might do the trick.

The financiers from Cupertino are reportedly in talks with Goldman Sachs' retail banking arm to be the next iPhone and iPad purchase lender. When carriers phased out phone subsidies, Apple started offering an iPhone zero-interest loan program with Citizens Financial in the US for upgrades, as well as options for other Apple device sales. Back in November, Apple's CEO Tim Cook touted installment plans as a way to cushion the price of a $999 handset like the iPhone X, saying that, at $33 a month, it comes about the same as skipping one cup of Joe a week "at one of these nice coffee places."

Still, smartphone shipments fell the most on record in Q4, and research firms blamed the ever-rising flagship phone prices for it, resulting in longer upgrade cycles. Thus, providing hesitant iPhone buyers with new options to purchase may be just what the doctor ordered, hence the talks with Goldman Sachs on those extra sweet zero-interest loans that might land with the iPhone 9, Xs and Xs Plus, or whatever Apple names the 2018 crop.

source: WSJ

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26 Comments

1. Boast_Rider

Posts: 534; Member since: Sep 14, 2017

If you need financing to buy a phone, you shouldn't buy it. This kind of stupid and rampant consumerism is what leads people to have negligible savings at their retirement.

3. NickHill

Posts: 388; Member since: May 07, 2016

See, how different mentalities we all have. Some worry about the retirement while some live in the present. You might die tomorrow who knows.

10. sissy246

Posts: 7035; Member since: Mar 04, 2015

You should always have your retirement in check.

25. sgodsell

Posts: 7043; Member since: Mar 16, 2013

Just put retirement on the back burner for now. Let's just focus on the part about if you have to finance for an iPhone, then you really CANNOT afford to buy the iPhone in the first place, period. End of story. Talking about retirement doesn't matter, when you are a person that cannot buy a smartphone outright.

5. sissy246

Posts: 7035; Member since: Mar 04, 2015

There is nothing wrong with people making payments if that is what they want to do. We have 7 phone's on my att account and making payments on all but my note 8 because I did pay cash for it. Doesn't mean I can't afford them. Do you realize how much money Apple and Samsung and all the other would lose if people couldn't make payments. Did you pay cash for your car or house. Do you use a credit card to buy things. That's the same as making payments on what you buy but, at least there is no interest on the phone when most cards have some. That's just dumb to say there shouldn't be payment for phones.

13. Boast_Rider

Posts: 534; Member since: Sep 14, 2017

There is no interest on my credit cards as long as I pay them back on time. The revolving interest is for the losers who pay the minimum amount and then end up paying a huge interest Yes, I paid cash for my car, and will pay cash for my house when I get that, though renting is ultra cheap in my area(1% cost of a new house for an year). I'm not saying there shouldn't be payment on phones. I'm saying that you shouldn't use them, and instead pay cash on a cheaper phone that, you know, doesn't get you reaching for paying the rent next month. If you can afford a phone, just get it for cash. Payments suck a lot more out in the long run if you crunch the numbers. Anyway, it's free advice, take it or leave it.

20. whatev

Posts: 2156; Member since: Oct 28, 2015

Totally agree with you sissy

22. TerryD

Posts: 540; Member since: May 09, 2017

Do you have credit cards with balance transfers? At present you can get a 0% interest rate on a balance transfer for up to 40 months. As long as you pay the minimum every month you don't have to worry. Quite easy to just pay the minimum and end up with money to pay after the 40 months. By getting credit you're actually improving your credit rating too so it'll help you if you wanted a mortgage or car loan in the future.

2. TerryD

Posts: 540; Member since: May 09, 2017

Don't you get the option to pay for the phone via the carrier contract? eg. 24 months at £50 a month with 20gb of data and unlimited calls/texts?

11. RebelwithoutaClue unregistered

In my country, this is indeed possible but also would get you a negative credit rating. Meaning it would be more difficult to impossible to get a mortgage and other loans.

21. TerryD

Posts: 540; Member since: May 09, 2017

Really? I find it so odd that different countries do things in such different ways. For years it's been the main way to get a phone in the UK, with the carriers hiding the true cost of the handset in the contract price.

24. RebelwithoutaClue unregistered

Same here, the contract price would be just higher. But some people got into trouble over this and they made 2 steps now. One, the phone has to be in the contract separately, two any phone over 250 gets you a negative credit rating.

26. TerryD

Posts: 540; Member since: May 09, 2017

They've tightened it up a bit in the UK now. I think they're obliged to tell you how much you'll be paying over the term of the contract. O2 will separate the phone and mins/data so that once you've finished paying for the phone you don't keep on paying the full contract price.

7. Back_from_beyond

Posts: 1307; Member since: Sep 04, 2015

So Apple is looking to boost it's American sales by offering their own financing plans, as a counter for no more subsidized phone purchases which is hurting their business. Doesn't that create a unfair competition environment. Those so called zero interest plans will rob you blind, you usually end up paying more than you would buying it through a carrier.

23. profperez1

Posts: 76; Member since: May 08, 2012

I've been an adult for 30 years and one thing I have learned. Having monthly reoccurring liabilities isn't fun! Before you know it you turn around and you have $1500 worth of bills JUST like this. Suckers!

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