Apple is doing everything possible to perform better in the world's most powerful consumer market, China. Its shares have started to dip recently and the company is aware that a solid performance in the Chinese market can help boost the stock.
CEO Tim Cook, who has made two trips to the country in less than a year, commented that China would become the company's largest market in a few years. To ensure more product accessibility for Chinese consumers, the company has now introduced a new installment payment option in its online store in the country, according to TNW.
At the moment, it is only available to customers of China Merchants Bank. Users choosing 1, 3, 6 and 12-month installment options will not be charged any interest. However, the 18 month-payment option comes with 6.5 percent interest, and the 24 month-installment scheme carries 8.5 percent interest.
Unlike shoppers from other countries, Chinese consumers still use cash for the vast majority of their transactions. Credit-based shopping is still an upcoming trend and is yet to find a place amongst shoppers in the country.
Despite having sold a little over 2 million iPhone 5 during the first week of sales in the country, Apple is still lagging behind competitors like Samsung in the Chinese market. The bulk of the Chinese middle class doesn't have the required spending power to splurge on Apple's phones and other products, and so they choose more affordable ones. Apple is hoping that its installment scheme will address this, and improve its position in China.
by RTT Staff Writer
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