Picking up a new iPhone isn’t cheap, and it’s probably only going to get more expensive over time. The same goes for Apple’s other products. As technology advances, the company feels higher price tags are justified. And consumers don’t have any hesitation because of their loyalty to Apple. So it’s a good thing financing options exist to spread costs across several months (or sometimes years) to get a new phone, tablet, computer, or smartwatch.
Often the problem with financing, at least through a credit card, is that you’re on the hook for your purchase’s total plus a high interest rate. If you fall to keep up with payments, the interest builds up exponentially.
Discussions between Apple and Goldman Sachs are reportedly ongoing to have the financial firm issue loans to shoppers wanting new devices, according to the Wall Street Journal.
Apple’s customers would be able to get a loan directly from Goldman Sachs with the purpose of paying for their purchases over time while avoiding high interest rates. There’s currently the iPhone Upgrade Program that allows customers to get a new iPhone with interest-free financing, but that’s operated by Citizens Financial. Goldman Sachs would likely take over the program if a deal is made.
It wouldn’t be the first time these two companies work together. Goldman Sachs has been Apple’s investment bank of choice for years, allowing the Cupertino-based company to generate billions of dollars in returns.