The iPhone X’s sky-high price is the main reason why Apple didn’t sell more of its new flagship over Christmas. That’s what various analysts said, about Apple’s first $1,000 smartphone ever.
But the iPhone X and its successors may become more affordable to buyers, without Apple having to drop the price. Enter Goldman Sachs.
The investment bank has already worked with Apple to raise tens of billions of dollars, but Goldman Sachs is now eying the consumer banking niche where Apple can help it net millions of potential customers looking for loans to pay their expensive iPhone habits.
According to The Wall Street Journal, Goldman Sachs is negotiating with Apple to offer financing options to iPhone buyers.
Goldman Sachs wants to tempt iPhone buyers with better loan deals than credit card institutions, the report notes.
The deal hasn’t been finalized, and talks could still fall apart. But if successful, Goldman Sachs may offer iPhone buyers a “point-of-sale” loan at checkout, that may be significantly cheaper than credit cards.
Goldman Sachs launched an online lender business called Marcus which helps people refinance credit-card-debt. Marcus loans come with a 12% interest rate.
Credit cards can charge upward of 20% in interest, aside from late fees and other charges. Should Goldman Sachs come with a Marcus-equivalent for iPhone purchases, then buyers may be more inclined to avoid credit cards when buying Apple’s expensive toys.
By targeting Apple fans, Goldman Sachs looks to grab a sizeable chunk of the point-of-sale loans business. In 2017, shoppers borrowed more than $200 billion from credit card companies according to First Annapolis estimates quoted by The Journal, with $80 billion of it going towards expensive furniture and electronics items.
This year, Apple is expected to launch three distinct iPhone X successors, including a more affordable version. But it’s unlikely for Apple to drop the price of the high-end iPhone X successor. $999 may stay in place as the new norm for flagship devices for at least a year. Samsung’s new Galaxy S and Note phones are also expected to be more expensive than last year’s models.