Apple's new device leasing program may seem like an attractive offer for consumers, but upon closer inspection, it turns out to be a serious bargain. Under this scheme of one of the richest companies in the world, customers can get smart devices like iPhones and MacBooks by paying a monthly fee. For Pakistani consumers, who are already facing heavy taxes and a weak rupee, this financing model could become a permanent financial burden.

Actual calculation of this leasing model

When you take a smartphone on monthly installments or lease, you pay much more than the original price. Prices of phones are already skyrocketing in the domestic market due to PTA tax and customs duty. When international leasing fees are factored in, the average buyer is pocketing the company much more in the long run than the actual cost of their phone. You have to think about whether or not racing to upgrade models every year is really compatible with your monthly budget.

Local market and installment alternatives

There is already a trend in Pakistan to purchase mobile phones on zero percent markup or easy installments through local banks and online platforms. There is no clear picture yet as to how Apple's official leasing policy will be implemented here and what additional taxes will be applicable.

  • Local banks offer easy installments on credit cards
  • Third party financing often comes with hidden charges
  • Leased phones cannot be used without PTA registration

What should you do now?

If you plan to upgrade your phone, avoid committing to any long-term lease right away. Calculate your monthly income and see if you can get a better deal through a cash purchase or local bank installments. Read the fine print of any foreign financing scheme carefully.

What to look forward to?

In the coming weeks, it will be important to see whether local regulators or a larger network formally introduce these types of international lease models in Pakistan. Also, changes in SBP's import policies and tax structure of PTA will determine how accessible or unaffordable this facility becomes for Pakistani consumers.