Apple’s ‘Special’ Financing is Special Alright!


Just went on Apple’s web store to see about lead times for shipping the new iPhone 6. When I clicked to check financing options, this “Limited time offer” appeared.

Check out the paragraph below the “Apply Now” button where it states:

The purchase APR will be 22.99% or 26.99% variable, based on your creditworthiness.

Those are interest rates that a mobster named Lenny-the-kneecapper would love, no doubt. If you choose one of these payment options and miss one payment or are late, the interest rates kick in. It simply is a bad option and why so many people get in to debt with interest rates that mean you end up paying double, triple or more for a device like this one.

About Steve Borsch

I'm CEO of Marketing Directions, Inc., a trend forecasting, consulting and publishing firm in Minnesota. Prior to that I was Vice President, Strategic Alliances at Lawson Software in St. Paul where I was responsible for all partnerships at this major vendor of enterprise resource planning software products and services. Read more about me here unless you're already weary of me telling you how incredible and awesome I am.


  1. I’ve always refered to it as “Fingerhut financing”. Surprised Apple would employ such a scheme.

  2. Steve Borsch says:

    Yep. Me too. But maybe this is a way to enable the “low end” Apple claims to not be going after so they can buy too. Sadly, it always seems like those without money are the ones seen as the biggest risk and therefore pay nearly usurious interest rates like these sure seem to be.

  3. alan geeves says:

    In New Zealand those rates are not much higher than non bank credit cards. Im not buying an iphone but if I was I wouldnt be borrowing to do so at any interest rate

  4. Steve Borsch says:

    AT&T here in the U.S. has their “Next” plan to purchase phones without a subsidy. They’re trying to wean us off subsidies so we’ll be like the rest of the world and buy our phones outright!

    Fortunately there isn’t an interest rate on this Next plan. Of course, they haven’t lowered our monthly bill so the “old” subsidy is still in there…which likely makes up for the interest they’re not charging.

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