How Will You Finance Your New Apple iPhone 11?

With the recent release of the newest Apple iPhone 11, one can’t help but marvel at the evolution of the mobile cell phone from a basic wireless communication device in 2007 to a hand held computer with bionic cameras in 2019. How is it possible that the average consumer is able to acquire one of these pieces of equipment that range in price from $700 - $1100, not including data usage?  

Author and engineer, John Browne, in his recently released book, “Make, Think, Imagine: Engineering the Future of Civilization” analyzes and describes the contributions of innovators who have developed technological breakthroughs, such as the iPhone, that help to improve human civilization. We are all indebted to these visionaries who have designed the various inventions that have benefitted humanity and advanced civilization.

After reading the review and synopsis, however, it occurred to me that the process upon which new products are conceived, developed, and brought to market are just the initial components of the equation. The financing options offered by Apple actually facilitate the widespread distribution of the iPhone and essentially places the devices into the hands of many users. This funding contract is the “grease” that brings about the growth of the producer and surprisingly, it can be traced to the origins of the equipment lease & finance industry.  

For technological advances to succeed in the marketplace, they must be broadly accessible. Innovative financing tools have provided the answer. Developed by creditors and lessors, the loan and lease industry has enabled businesses to acquire and implement cutting edge technology and software, thus becoming more competitive and profitable.  

ELFA, the largest trade association in the lease finance industry, reported that “In 2018, …..$1.676 trillion was invested by U.S. businesses, nonprofits and government agencies in plant, equipment and software. Approximately 63%, or $1.059 trillion of that investment, was financed through loans, leases and lines of credit.  America's equipment finance companies are the source of such financing, providing access to capital. “

And none of the above figures count the financing of iPhones (or anything that competes with it!) John Browne concluded that we need not and must not put the brakes on technological advance. Civilization is founded on engineering innovation; all progress stems from the human urge to make things and to shape the world around us, resulting in greater freedom, health and wealth for all.

With the advances in the credit industry and lease finance capabilities, businesses can easily update their equipment, as well as their phones. Innovation in partnership with the credit industry will enhance your life and your business.

It’s the Lease We Can Do,
Kevin F. Clune, CLFP