Apple has found a way to boost sales in China as it announced an interest-free loan program for iPhone buyers. The financing program is available to AliPay users who will purchase smartphones from the American brand.
As first reported by The Wall Street Journal, Apple and AliPay informed customers that the loan option will be available for consumers who will make a minimum purchase of 4,000 yuan or $595. The program aims to give Chinese customers more options for buying new iPhones.
Earlier last month, Apple CEO Tim Cook said the company has been going through rough patches due to slowing iPhone sales in China. He added that trade tensions between the country and the U.S. affected the tech firm's performance and revenue in the region.
Analysts believe Apple's choice of collaborating with AliPay will help encourage Chinese consumers to buy newer iPhone models. Alibaba's AliPay has over 700 million active users in China, which increases the chances of better sales figures in 2019.
AppleInsider noted that the financing program offers AliPay users with a $30 per month loan that could be paid by installment for 24 months. The offer will only be available until March 25.
Tech enthusiasts pointed out that the deadline for grabbing the AliPay loan coincides with what is widely speculated as the date when Apple launches its two new subscription services.
Multiple financial analysts previously criticized the company's rising prices that prevent consumers from purchasing iPhones. In response to the call, Apple slashed prices in a couple of regions, including China. However, the discount strategy didn't work as expected.
AliPay offered interest-free loans on an annual basis for Apple purchases but this new partnership with the smartphone giant is expected to give the iPhone the sales boost that it needs for the coming months.
It is unclear how the company will further boost sales if the AliPay deal doesn't haul in as much as expected. On the other hand, consumers have expressed hopes for further improvements in service and cheaper prices.
Meanwhile, iPhone sales are also expected to see improvements in the next couple of years should Apple deliver the rumored foldable iPhone that could compete with the likes of Samsung's Galaxy Fold and Huawei's upcoming 5G foldable smartphone.
According to The Verge, Apple already published a patent application that displays the blueprint of its own foldable phone. While the application has yet to be approved, some tech experts said the firm's own foldable smartphone could increase interest among buyers who are in search of new designs.
