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Different companies are experiencing the weight of the challenging economic climate around the globe, and that includes Apple. Nonetheless, the Cupertino company’s iPhone manages to continue its supremacy, even with the smartphone shipment declines in various markets. The reason behind this could be the programs that allow current Apple customers to upgrade to newer models easily. Apple CFO Luca Maestri said the “majority of iPhones” are now being obtained this way.
Maestri shared the news during the analyst call, saying this is significantly aiding the success of the product. “The majority of iPhones, at this point, are sold using some kind of a program, trade-ins, installments, some kind of financing,” the CFO said. “And that percentage, which again, it’s well over 50%, is very similar across developed and emerging markets. We want to do more of that because we think it really helps reduce the affordability threshold for our products. And we think it is also one of the reasons why our product mix has been very strong during the last couple of cycles.”
The CFO’s statement follows the adjustment Apple made in the maximum trade-in value of its different iPhone models. In the new estimated trade-in value details shared by the company, customers can get up to £50 additional value in their old iPhones. Unfortunately, some of the value of other models were reduced to lower prices.
iPhone 13 Pro Max: from $630 / £590 to $640 / £630 max trade-in value
iPhone 13 Pro: from $530 / £510 to $530 / £525 max trade-in value
iPhone 13 mini: from $330 / £335 to $330 / £340 max trade-in value
iPhone 12 Pro Max: from $440 / £390 to $460 / £390 max trade-in value
iPhone 12 Pro: from $350 / £350 to $360/ £420 max trade-in value
iPhone 12 mini: from $220 / £220 to $200/ £210 max trade-in value
iPhone SE (2nd generation): from $90 / £105 to $90 / £105 max trade-in value
iPhone 11 Pro: from $240 / £240 to $250/ £245 max trade-in value
On the other hand, while the above adjustments could aid Apple in encouraging its customers to do an upgrade, the recent changes in the Apple Card Monthly Installments might affect customers’ purchasing behavior and future upgrade plans. To recall, Apple said its Apple Card Monthly Installments (ACMI) would begin requiring a connection with AT&T, T-Mobile, or Verizon for every iPhone purchase this month. It will apply to all iPhone purchases everywhere where ACMI is accepted and efficiently removes customers’ “Connect to a carrier later” option, forcing them to instantly connect to a specific carrier upon purchasing their new iPhones using ACMI.
Meanwhile, Apple recently removed its interest-free financing option in Canada for up to 24 months. With this, customers in Canada will now be forced to observe Apple’s new interest rate policy when purchasing devices via financing options. According to the company’s financing page, interest rates for financing purchases now range from 4.99% to 7.99% APR. Specifically, the former will be observed for iPad or Mac purchases, while the latter will be applied for iPhone financing purchases for up to 24 months.