Recently, Apple has introduced a new financing system in China for those looking to purchase an Apple product. The system will allow prospective buyers to make installment payment plans for iPhones and MacBook laptops.
According to a Bloomberg report, “Apple will let buyers split payments into 3, 6, 12, 18 or 24 installments. Payments on purchases costing from 300 yuan ($48) to 30,000 yuan made via the company’s Chinese website can be spread over as long as two years. The plan, which requires a China Merchants Bank Co. credit card, has fees ranging from zero to 8.5 percent.”
In an interview with Bloomberg, David Wolf - China managing director for market consultant Allison+Partners in Beijing, stated that, “Apple has likely approached maximum penetration in China’s higher economic stratas, and now needs to be able to appeal to students, workers and rural residents sustain robust growth,”.
“Financing is traditionally the best route to make expensive luxury items affordable to those unable to save the cash for them, and if Apple pulls it off it will be a pioneer in consumer credit in China,” Wolf said.
However, Tech.Sina is reporting that by introducing this new payment system, Apple’s iPhone would lose some of its status as a symbol of success. The launch of the online installment plan would lead to Apple products becoming more ‘cheap’, the report states.
According to the report, Apple products, in this case iPhones, in China are not just cool, it is a symbol of success. Even, the text “Sent from my iPhone” that is automatically generate is seen as a huge thing in China.
This move by Apple will result in the iPhone losing one of its biggest advantage – status symbol tag and consumers will now be more rational when purchasing the device, according to the report.
Consumers are now more likely to purchase the iPhone based on whether it suits their needs and not just to make others jealous.
Source (Chinese): Tech.Sina