Banks to Gain Big from iPhone 17 EMI Purchases in India
Indian banks are poised to reap significant financial benefits from the anticipated demand for the iPhone 17, particularly through the surge in customers opting for Equated Monthly Installment (EMI) schemes. A financial advisor estimates that banks could earn approximately ₹449 crore in interest from these purchases.
The new iPhone 17, expected to be priced at ₹82,900, is projected to attract around one million buyers in India. Of these, an estimated 70%, or approximately 7 lakh customers, are likely to purchase the device using EMI schemes. This substantial uptake in EMI options is expected to drive significant revenue for banks.
According to the financial advisor, the structure of these EMI schemes will result in substantial interest gains for the banks involved. While Apple introduces the product and consumers are eager to purchase, the banks are the primary beneficiaries of the financing arrangements. This phenomenon highlights the growing trend of consumer electronics being financed through EMI options, making them more accessible to a wider range of customers.
The popularity of EMI schemes can be attributed to several factors, including the increasing affordability of smartphones and the desire among consumers to own the latest technology without paying the full price upfront. Banks have also made it easier for customers to access EMI options, often offering instant approvals and competitive interest rates.
This trend presents a lucrative opportunity for banks in India, allowing them to expand their lending portfolios and generate substantial interest income. As the demand for consumer electronics continues to grow, the role of EMI schemes is likely to become even more prominent, further benefiting the financial sector.
The financial advisor’s analysis sheds light on the often-overlooked aspect of consumer electronics sales – the significant financial gains for banks through EMI financing. While the focus is often on the manufacturers and consumers, the banks play a crucial role in facilitating these transactions and ultimately profiting from the interest charged on these loans.
In summary, the anticipated launch of the iPhone 17 in India is not only expected to be a commercial success for Apple but also a significant opportunity for banks to boost their earnings through EMI financing. With a large percentage of buyers expected to opt for EMI schemes, the financial sector stands to gain substantially from this trend.
Disclaimer: This news article is based on publicly available information and may be subject to updates.
