Cupertino is in talks with Goldman Sachs over a deal that could mean cheaper finance on Apple products, according to a new report. The investment bank already raised billions of dollars for Apple, but sources warn a deal remains far from complete.
Apple already has finance partners that help make even its most expensive products more affordable. Some of them charge zero interest, while others, such as Barclaycard, can charge as much as 28.24 percent. There could be another option soon.
Apple in talks with Goldman Sachs
Goldman Sachs wants to team with Apple as it looks to expand its consumer lending business. “The Wall Street firm is in talks to offer financing to shoppers buying phones, watches and other gadgets from Apple,” reports The Wall Street Journal, citing people familiar with the matter.
“Customers purchasing a $1,000 iPhone X could take out a loan from Goldman instead of charging it to credit cards that often carry high interest rates.” However, “talks between the tech giant and the investment bank are continuing and could still fall apart,” the report warns.
With little to tell at this point, it’s unclear whether a Goldman Sachs deal would replace Apple’s existing finance partners, or if it could lead to an additional option for consumers. There is a suggestion, however, that the talks involve “some form of upgrade program.”
Apple already offers an iPhone Upgrade Program through a partnership with Citizens Financial Group. It allows customers to spread the cost of their new handset over 24 months and upgrade every without ever having to fork out a large upfront fee.
“It is unclear whether anything will change with the handling of the outstanding Citizens loans,” WSJ adds.
The deal could be good for Apple and Goldman Sachs
It’s clear why Apple and Goldman Sachs would make a good partnership. More affordable finance would surely lead to an increase in sales of Apple’s more expensive products, while Goldman could stand to make billions from its Apple loans.
And with the cost of Apple devices climbing every year, customers may need finance now more than ever. You’ll need at least $1,000 to get your hands on iPhone X, while the new iMac Pro starts at a whopping $5,000.
Killian Bell is a freelance writer based in the U.K. He has an interest in all things tech and also covers Android over at CultofAndroid.com. You can follow him on Twitter via @killianbell.
8 responses to “Apple’s next partnership could make its gadgets more affordable”
So iphone x sales lag goldmine sachs is giving loans..sad
Hey heres and idea don’t charge 1000+ or 5000+ for tech devices
You lease “sometimes” big ticket items cars/rent
Phones are not to be leased…buy what you can afford
I agree. Loans don’t make things more affordable. They make expensive things available, but at a price. It’s called the Universal Economic Problem. Unlimited wants with limited means. Credit does not solve that. I’ll take out as loan for a house. I’ve taken loans for cars, though those I usually pay off within a few months by shifting other assets. But for a phone or a computer? Nope. I’ll save a bit, get a new thing less often, or get something less powerful. But consumable consumer goods, nope.
If the average person thought about paying themselves first…. everyone would be a Millionaire as long as they started early enough. If you aren’t getting a company match on your retirement you are literally throwing away money …its the only 100% sure fire investment one will get.
These tech devices are anti-retirement having an iPhone payment thats $45 a month is a net loss, putting that same $45 in a quality mutual fund and getting your company to add $45 is where people get rich.
Apple really does not do humanity a favor by overpricing their products.
Its really a shame.
I wouldn’t put the blame on Apple. It’s the consumer that needs to use a little discipline.
Apple forces prices up though for their own lack of ability to sell more…. example in latest earnings Apple claims 13v14 shows growth and said that 16x on the earnings call…what they left out was last year where they mysteriously extended the quarter by a week so iPhone would not show a decline. that would have occurred had they kept that quarter at 13.m
Apple also crows about RPU up to 796 and also sells a 349 speaker that requires another apple device AND some form of apple service.
That is tricking the user to overspend
I don’t accept the premise that Apple forces prices up or tricks the consumers. I can find numerous less expensive phones, tablets, computers, some of them are even Apple products. Personal responsibility and saying NO is what is lacking.
And apple makes it so easy not to say no…. to fans and those not good with technology.. take Whats a computer ad (buy an overpriced and less capable ipad) ..its tricks
Don’t count on this making Apple products more affordable. Apple loves it exceptional profit margins. As do its shareholders.