A bank loan for an iPhone X; yes, not a joke!

After releasing a wireless charging feature on its latest iPhone, let’s assume Apple’s next release will have tools to enable priests directly WhatsApp God and hypostases to ask about the actual date of Jesus’ 2nd coming; after all, it appears the aim is turn impossibilities into possibilities. But the end results of Apple’s outrageous imaginations might ultimately become too expensive to afford by many of its fans around the world; take the example of iPhone X, for which they are asking users to fork out a mind boggling US$999 after a $1 discount. CCN Tech Reporter David Goldman writes that ‘a decade ago, consumers feigned shock and horror when the company said the first iPhone would cost $599; Apple would eventually cut the price by $200 and offered credits to customers who already bought one.’ “Today, the average selling price of an iPhone is $605 -- and no one blinks an eye. The 256 GB iPhone 7 Plus, {for instance} had cost $969; so some folks have already paid $1,000 for their iPhones,” adds Goldman. This means, US$1000 for the iPhone X shouldn’t be such a shocker. And, let’s be clear here; iPhone buyers are not necessarily the richest folks in our society; they are just loyal users of the brand products and are willing to fork out anything for the latest release. I give you Salomon, a colleague at work who owns an iPhone 6s. Released in September 2015, Salomon knows he is still a couple of series behind given that there’s iPhone 8 now; but he’s determined to catch-up, at whatever price. I am currently using a Nexus 6 (what in hell is that? I hear you ask) and he was pushing me to dump it for an iPhone X. “Ken, forget the price, it is what a guy like you needs. The iPhone is worth every penny,” he told me during an office banter session last week. Apple got one thing right, that when you invest in creating a unique product user experience, you create an addictive relationship with consumers. I have never used an iPhone, so it is hard for me to appreciate its unique user experience that makes one ignore the price tag; however, I could make the same argument for Mercedes cars; the best or nothing. So I know it’s possible to be unreasonable. Because of the compulsive user experience, consumers are willing to use a product now and pay for it later, effectively creating business opportunities for consumer banking services. In a bid to ride on the global conversation following the release of the iPhone X, Bank of Kigali tweeted on Wednesday, asking its followers to own Apple’s latest gadget by applying for a ‘phone loan’ and the reaction was amusingly fascinating. Some followers appeared shocked to learn there’s such a thing as a ‘phone loan,’ so one follower mused, ‘after the phone loan, you will probably tell us you have a wedding loan.’ The truth could be surprising to some; a wedding loan actually exists. There is also a holiday loan. Casually, one would deride at someone who picks a loan to go on holiday, marry or buy a phone, but the reality is known to all of us; in economies where it is hard to have disposable income after expenditure on basic requirements of life, the save now, consume later approach is dead. Today, most people live on a buy now, pay later basis; it is the reason why there is a loan for almost everything. The credit card business thrives on this philosophy; why save to buy when you could pay as you use? This is a global trend for banks. For instance, Royal Bank of Scotland allows its customers to borrow between a thousand and fifty thousand pounds to finance their annual holidays repayable over a period of up to five years. “It could be your honeymoon, a round the world trip, an important family wedding or an event abroad you can’t miss,” says its advertising copy. In the world of iPhones, customers are already using bank loans to buy the flashy gadget. Before the latest release, the average iPhone was costing Apple lovers a monthly installment of $25 over two years or $600 over a 24-month period. At $999, analysts say the iPhone X will cost $42 a month over a 24-month period which means $17 a month more than what many are already paying, or higher depending on interest rates. So, as long as Apple product fans can’t overcome the compulsive user experience of the iPhone, banks will stay in business as they help obsessed consumers to buy now and pay later, at a cost some would find unnecessary but to loyal fans, the price is worth every penny. editorial@newtimes.co.rw

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A bank loan for an iPhone X; yes, not a joke!