How an iPhone is financed with Apple Card is changing
Apple is changing Apple Card financing terms for iPhone and Apple Watch in time for the new device season.
Apple Card Monthly Installments allow customers to pay for products with zero interest using a portion of their approved Apple Card balance. Apple Watch and iPhone are still eligible for this finance option, but the terms have changed.
Customers financing an iPhone via Apple Card Monthly Installments will be required to connect their device to a carrier at purchase starting August 15. This practice is already in place when buying an iPhone in a physical Apple Store location, but it is also being extended to online purchases.
Those carriers include AT&T, T-Mobile, and Verizon.
This is a different financing option from Apple's iPhone Upgrade Program, which is financed through Citizens One. It also doesn't apply to customers who pay without financing.
Apple Watch financing is being reduced from 24 months to 12 months on August 15. The 24-month option is still available until that date.
It isn't clear why these finance term changes have been made. It was first discovered by 9to5Mac via a footnote in the Apple Store iPhone order page.
An Apple support document detailing the Apple Card Monthly Installment options was updated on June 15. No additional details were provided on this page.
Apple tends to announce its new iPhone and Apple Watch during a September event. That would mean these financing changes go into effect just in time for the new device purchasing season.
