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What? iPads have tons of resale value. Apple’s Pay Later has zero interest and a cap of $1000 of credit. People are going to buy a new iPad whether Apple gives
by borski 3y ago
What? iPads have tons of resale value. Apple’s Pay Later has zero interest and a cap of $1000 of credit.
People are going to buy a new iPad whether Apple gives them an easier way to do it or not; the difference is with Apple’s Pay Later they’re only on the hook for the cost of the device, and not additional interest monthly on top of that.
And iPads are very resellable.
What are you talking about?
- paxys 3y agoThey take a 30% or greater hit the second you take them out of the packaging, and even more after a newer version is released. Consumer electronics are not an appreciating asset. You will never be able to pay off the original debt by selling it.
- borski 3y agoSure, and you’re not intended to. You’re buying a product that presumably, to you, has value. Apple is offering to let you have their valuable product by paying it off over time with zero interest. That’s it. The point is that instead of laying the cash out upfront you can use that cash to generate income while you also have your valuable product you wanted to buy. Not sure why that’s hard to parse.
- bombcar 3y agoApple's BNPL just splits the cost over X months charged to you, I believe. Many of the other 0% interest over 24 months hit you with all the accumulated interest at 30% if you don't pay off in full in that 24 months.
- borski 3y agoPrecisely. And I am not defending the “interest free for a while but you’ll never pay it off and then get hit with 30%” crowd, although I do think it’s laid out pretty clearly in the paperwork. People do choose to live beyond their means. It’s a massive mistake. But that’s not what Apple is doing here.