Fed up with being tied into two year contracts by mobile carriers? As part of its latest product release Apple (NASDAQ:AAPL) are now offering an interest-free finance plan for the iPhone 7, allowing you to upgrade to the new model every year: iPhone jealousy is no more.
The iPhone Upgrade Programme, offered through Barclays Bank, allows customers to pay off the cost of a handset over 20 months, starting from just £33.50 a month for the 32GB iPhone 7. Starting with a £49 upfront cost, the 20 month payment plan is interest-free and offers the opportunity to upgrade from month 11. If the customer doesn’t choose to upgrade, the phone is theirs to keep after 20 months.
The monthly cost also includes AppleCare+ for two years and the phone is unlocked, so you will be able to use it on any network. With SIM deals starting from £10, it could well be a cheaper alternative to signing a two-year contract with an iPhone included from traditional carriers.
With their new plan Apple have now entered competition with similar standalone sites offering the ability for customers to split handset payments, but at much higher interest rates. Unshackled.com offers loans through peer-to-peer loans provider Zopa – however, the best rate they offer, for those with a good credit rating, is 9.7 percent. Those with a poorer credit history are looking at between 12.7 percent and 29.7 percent.
Apple’s new financing contract is available from now; all that’s needed is proof of date of birth, employment details and UK home addresses from the last three years for a credit check.
Apple released their iPhone 7 last week to a slightly damper reception than previous years, with smaller queues in both China and the US. The lack of demand may have been exacerbated by supply problems; Apple issued a statement last Wednesday that both the jet black iPhone 7 and the iPhone 7 Plus were unavailable to be bought from stores due to a high number of advance orders.