Apple Has Added an Interest-Free Way to Buy an iPhone and Pay For It Over Time

A simpler (and cheaper) way to buy?

Apple's iPhones are expensive. But the company is adding a new way for you to pay for them, that could help you spread the cost over time without paying any interest in the process.

The folks over at Apple-tracking site 9to5Mac have discovered some new language Apple has added to its Apple Card payment options that includes mention of the ability to pay for the iPhone over time with no interest.

According to the text Apple added to the "Learn More" payment box, if you buy an iPhone with Apple Card, you can now choose an installment option. Those installment payments, which vary depending on the iPhone version you choose, are added to your Apple Card monthly minimum payment amount.

"Installments aren't subject to interest like other purchases made with Apple Card," Apple writes, according to 9to5Mac. "If you pay more toward your installment balance, you may reduce the overall number of payments, but are still scheduled to pay your installment payment the following month."

So, rather than buy the iPhone outright or finance it with interest payments, you can instead buy an iPhone 11, iPhone 11 Pro, or iPhone 11 Pro Max and simply apply your installments to your minimum payment. Best of all, it's interest-free.

If that sounds familiar, it's because Apple CEO Tim Cook discussed the possibility of Apple launching a zero-interest installment plan option on iPhone purchases during his company's October earnings call. He noted at the time that iPhone payments would be spread over 24 months, so if you buy a $999 iPhone 11 Pro, for instance, you'd pay $41.63 per month.

The option is a potential boon for both Apple and those who buy an iPhone. On Apple's side, it's enticing people to pay into its own payment plans, earning the full cost of the iPhone for itself. Better yet, it's providing folks with another reason to get into Apple Card. Indeed, in addition to the interest-free option, the iPhone offer includes 3% in Daily Cash on the Apple Card. On a $1,000 iPhone, that's a $30 savings on the Apple Card balance. It's not a big savings, but it's a savings nonetheless.

Apple has been trying to make the argument for the past couple of years in which its flagship iPhone pricing has jumped that there are alternative ways to bring the price down. One of those is by trading in used phones for new models and reducing its cost. An interest-free way of paying over time is another. And for many shoppers on a budget, it makes the iPhone far more affordable -- especially during the costly holiday shopping season when there's plenty to spend on friends and family.

Needless to say, Apple really wants you to buy an iPhone. And it's willing to wait on getting all of the cash for it to make it happen.