Apple had introduced its own credit card - Apple Card earlier this year. The company has provided a new offer for promoting this card – Apple Card users will be able to buy iPhone with interest-free installments for 24 months. The company already offers three percent cashback on all purchases.

The announcement was made during Apple's quarterly earnings call.

"I'm very pleased to announce today that later this year, we're adding another great feature to Apple Card. Customers will be able to purchase their new iPhone and pay for it over 24 months with 0% interest," Tim Cook, Apple CEO stated.

The virtual, as well as physical card, is available to iPhone users so that they can combine their smartphone usage with their purchases. The physical card comes in the form of a Titanium card with laser-etched lettering. Users can view and check transactions and balance in the iPhone's Wallet app.

Apple has tied up with Walgreens, T-Mobile and Uber to provide cashback to Apple Card users.

Apple has put more focus on services as it diversifies. The smartphone market is saturated and the company's ace product, the iPhone is now suffering in sales every year. It is, therefore, working towards diversifying its offerings.

Apple has to date, offered its iPhone upgrade program, which lets a user upgrade to a new phone every 12 months. If a user chooses that option, which is still available, the user will get AppleCare+ free.

Apple has put out its offer in time for the upcoming holiday season.

The strategy is a win-win for Apple. It engages the user towards using the Apple Card, sells its iPhone and ties the user into the card for at least 12 months.

Besides the iPhone, Apple is offering interest-free payments for purchases over $300 until Thursday, November 14, not just on purchases made using the Apple Card, but many other credit cards.

The Apple logo is seen on the building of an Apple store in Beijing on January 4, 2019. (Photo: NICOLAS ASFOURI/AFP/Getty Images)