Chinese buyers to make payments for Apple products
Apple has a new plan for competing in the Chinese market where low-cost devices tend to rule. Apple has announced new payment plans that will allow Chinese users to pay out purchases ranging from approximately 300 yuan to 30,000 yuan made through Apple's Chinese website. Apple isn't doing any financing directly.
Rather, the plan requires the users to qualify for a China Merchants Bank credit card and has fees ranging from 0 to 8.5%. Presumably, the interest rate depends on the user's credit and the amount of the purchase. Apple is struggling to make its high-end products more affordable for Chinese buyers.
The average Chinese citizen makes a fraction of what consumers make in the US, but the Chinese market is one of the fastest-growing for the computer and technology industry in the world. The price of the iPhone 5 in China is 5288 yuan, which is about six weeks worth of pay for the average urban worker.