[charliemil4]

> The problem is that Apple’s financing programs — both the one pictured above, and also the iPhone Upgrade Program — continue to be funded by 3rd-parties; Apple is making it easier to buy an iPhone, but is still focused on getting its money right away. And, as long as it sticks with this approach, its Apple One bundle feels more like a money-grab, and less like a strategic driver of the business.

To me, I see this as a finance play. Since rates are near zero (and will be for some time), you can effectively leverage your revenues on both ends: servicing debt and factoring accounts receivable.

Since Apple's customers are usually high income buyers, the AR ratings are already high, combined with low rates, means Apple gets 95%+ of the revenues up front. I'm not sure what period for the new subscriptions they have (whether its a quarterly or annual period), but whatever it is, it's genius.

[zubairk]

surprisingly, the apple card has ended up being a subprime card (https://www.businessinsider.com/apple-card-reportedly-approv...) and they unveiled the credit steps program to approve more low credit score customers, which is definitely not the customer demo i anticipated flocking to the card

[charliemil4]

Wow, that's shocking. Thanks for the info.

I wonder if that's a GS element in the contract, if less than X number of primes (or some metric on the campaign), then we reserve right for sub.

[adeelk93]

I suspect it’s due to the “daily cash” aspect of the card