Friday, November 6, 2015

Apple Likely Will Bring Interest Free Payment Plan To iPad To Spur Sales

I love Apple's new iPhone payment plan where you can pay for a brand new iPhone over two years and upgrade to a new one after 12 payments have been made to get a new one (you'll have to trade in the old one though).  And here's the kicker:  I am not even a part of this installment plan because T-Mobile had issues the day I went to the Apple store to get my iPhone 6S.  However, given its appeal, I'm gonna go out on a limb and say that Apple will expand this plan not only internationally and online so that you don't have to visit the store to do it (not sure how Apple will handle the part about you trading in your old iPhone), but Apple will include the iPad as well.

When Apple add the iPad to the installment plan, it could be the catalyst that Wall Street and investors are looking for to jump start the iPad.  Furthermore, it could be also mean more sales as people who cannot or are unwilling to pay a premium up front for the iPad, iPad mini, or iPad Pro up front but would not mind paying for the Apple tablet over a couple of years with the option to trade in for a new one after a year.

For the same reason that I upgrade my iPhone annually, I, along with many others, would be willing to do the same for the iPad. 

And all the fear about sagging iPad sales from Wall Street will go away.  I don't know what the actual profit and cash flow projection is or what Apple's internal numbers really show but I do know it's this.  HUGE.  Possibly bigger than HUGE because none of its competitors can really follow Apple down this route because they simply do not have the cash on hand to do it.

And here is another reason why Apple will start selling the iPad with installment plans as an option:  Apple is looking down the road at the bigger picture when Apple Financial or other services come online.  We'll get into another day but these small baby steps Apple is taking, starting with the iPhone installment plan, will amplify into bigger sales and profit in the decades to come. 

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