What should Apple do with all that money? The company has so much money that executives truly don’t know what to do with it so they give tens of billions to shareholders in the form of dividends and try to prop up the stock price by spending tens of billions more to buy back the company’s stock.
That hasn’t worked out well so why not try a different approach? Apple has enough money on hand to become the world’s biggest technology banker. To a certain extent that’s already started with the iPhone Upgrade Program which lets you get a new iPhone every year and pay a monthly fee,but more needs to be done, and the program should extend to other major Apple product lines.
Apple is acting a bit like a car dealer these days by taking in other smartphones as trade-ins for new iPhones. That’s called the Trade Up With Installments program. Bring in an older phone, trade it in for a specific credit amount to be applied to a new iPhone.
Let’s extend that to the Mac, iPad, even the Watch. Select the device you want and the trade-in period. Pay a monthly fee for the duration, then bring the device back in and get a new one. I think of this as similar to a car lease but for the technology gadgets you favor. Car leases run from a year to three years or more, and the entry barrier is low, monthly payments are low, and at the end of the period you give the car back and get another one or move on down the road.
Why not do the same thing for Mac, iPad, and Watch?
Apple has the money to make it happen, but so far has chosen to use third party bankers (though I suspect the bank has recourse should an iPhone owner default on the monthly payment). Absolutely positively Apple should do this when Apple Car is launched. Not many of us have $60,000 of cash lying around to spring on Apple’s fully autonomous self-driving solar powered car but being able to walk into an Apple showroom and drive out with a new car and a monthly payment book would go a long way toward jump starting Apple’s foray into the automobile world.
Photoshop users pay by the month. Many Microsoft Office users pay by the month. Apple Music is a monthly subscription service. iPhone Upgrade Program gets you a new iPhone every year for a monthly fee. Why not add Mac, iPad, Watch, and Apple Car to the mix?