Apple now offers Macs, iPads and everything else as a service
If you manage to hang onto a good credit rating, Apple just became a service.
Apple Card: Apple everything
This is because the company is now offering a really good deal on financing for new iPads, iPhones, Macs, AirPods and more – and it will cost you zero percent. If you have an Apple Card.
What does this mean?
It means that if you have an Apple Card, you can go all-in on Apple kit for one monthly payment over 6- or 12-months.
More expensive products are paid for over a year, while lower cost items such as AirPods get a 6-month payback term – but if you purchase one of the lower cost items with a higher cost device then your entire purchase will be repaid across 12-months.
And this means anyone with a credit rating can now access the Apple ecosystem on a monthly payment.
Which means, basically, Apple has become a service. You can use its hardware, its software, and access all its services for one set monthly fee.
(And you get 3% Daily Cash back on the transaction.)
Apple has become a service
Apple has become a service, which means it has made one of the biggest pivots ever, from a feast or famine business based on selling hit products, to adopting an approach that gives it a nice and regular predictable income.
The only flaw in the medium term is that it seems likely credit ratings will become harder to secure as the recession bites us all – Apple’s next step will likely be to develop a similar plan for those disenfranchised from such access to credit. There are business models that exist for this. I anticipate the company will adopt an approach for just this.
But, subject to regulatory scrutiny, we’ll probably have to see if Apple Card ever does emerge outside of the U.S. first.