iPhones are so expensive that over 50% are purchased with installment payments

Apple has just revealed some information about its iPhones, including the share of users who go through programs or subscriptions that allow them to pay for their devices in installments.

Credit: 123rf

Interviewed on the occasion of the publication of its results, Tim Cook, Apple’s CEO, as well as Luca Maestri, the company’s chief financial officer, revealed some crisp information about their flagship devices.

Bank of America’s Wamsi Mohan notably asked Apple executives what they think of iPhone upgrade programs and similar carrier offers. Maestri then replied that the majority of iPhones were now purchased this way, in the United States and elsewhere.

More than half of iPhones are purchased through a subscription

Today, the majority of iPhones are sold through a program, trade-in, installment payment, or some form of financing. This percentage, which is well over 50%, is very similar in developed and emerging markets. We want to do more, because we think it really helps to lower the accessibility threshold of our products. And we think that’s also one of the reasons why our product line has been very strong over the last two cycles. Maestri announces in the interview.

These data are ultimately not a surprise, given the ever higher prices of the latest iPhones. As a reminder, Apple had significantly increased its prices in Europe on the occasion of the release of the iPhone 14, and even intends to apply a new increase with its next iPhone 15, expected on September 13. It is therefore no wonder the majority of customers don’t pay for their smartphones all at once.

However, Tim Cook declined to say more about the lengthening of iPhone upgrade cycles. It seems like consumers now typically keep their smartphones for 3-4 years, instead of 1 to 2 years as was the case before. In question, the increase in the performance of the devices which make them more durable over time, the number of updates, but also ever higher prices. And you, do you also use any program allowing you to pay for your smartphone in installments? Do not hesitate to tell us in the comments.

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