Apple’s New Plan Allow Users to Finance New iPhones through Monthly Installments

The American multinational technology giant Apple Inc has just introduced a new plan under which it allows users to finance unlocked versions of the new iPhones through monthly installments.

The monthly installment will be starting from $32, said Apple. Until now, customers could only lease subsidized phones on two-year contracts requiring an up-front payment.

Susquehanna analysts wrote in a note on Thursday that they hope this program would act as a tailwind for iPhone sales, since they serve to shorten the replacement cycle.

The deal for iPhone owners, which will initially apply to the United States and 11 other key markets including China, has so far emerged as one of the most positive announcements that has been made at Apple’s annual launch event.

Along with the new iPhones, which has entered market with better cameras, faster chips, new colors and a force-sensitive ‘3D Touch’, Apple also unveiled a bigger iPad and a new TV set-top box that responds to voice commands.

The new products got halfhearted response from investors, with commentators saying Apple had failed to deliver a truly transformative product that would help to bring a surge in its stock.

Apple shares were up about 1.3% at $111.60 in early trading on Thursday, after closing down nearly 2% after the product event. Shares of the company have lost more than 16% since it hit a year-high in April.

FBR Capital Markets analyst Daniel Ives, said, “We view it as the right strategy at the right time. Apple needs to aggressively do everything in their power to catalyze upgrades and this is another step in that direction”.