The annual autumn iPhone launch has long been a marquee event for tech enthusiasts, but it has now also become a fiercely contested battleground for bank credit card marketing. With the arrival of the iPhone 18 Pro series and the first foldable iPhone Duo, a fresh scramble for installment-plan dominance in the premium consumer electronics space has officially ignited. Multiple major state-owned banks and joint-stock banks have jumped into the fray, rolling out 24-month interest-free plans, instant discounts on installment purchases, and bonus reward points, pushing the competition for handset installment deals to unprecedented heights.

Behind this marketing frenzy lies the deeper pain of a shrinking credit card portfolio across the industry. Total card issuance continues to decline, and outstanding balances have turned downward, signaling the definitive end of the era of reckless "land-grabbing" expansion. While premium 3C digital products offer banks a stable source of low-risk installment assets in the short term, relying on new-device promotions and fee concessions alone will not resolve the industry's structural transition. Whether credit card businesses can truly shift from a "scale-first" to a "quality-first" model remains an open question.

Apple handsets have become a must-win battleground for credit card installment plans, and with the new iPhone on sale, the marketing war has reached a fever pitch. A review of offerings shows that multiple state-owned and joint-stock banks have turned iPhone installment purchases into flagship campaigns, layering on ever-generous incentives to minimize financing costs and attract customers. State-owned giants are maxing out interest-free terms. For instance, ICBC and China Construction Bank are offering up to 24-month zero-interest installment plans on new iPhone models.

Joint-stock banks, meanwhile, are deploying differentiated strategies, pairing interest-free offers with bonus reward programs. Ping An Bank Co.,Ltd. (000001), during its September 7 to December 31 campaign period, is offering multi-channel installment discounts. Cardholders who use the bank's credit card for installment purchases at Apple's official Tmall store, JD.com's Apple self-operated store, the Apple website, or Apple retail locations can enjoy up to 24 months of interest-free installments, along with a 100-yuan repayment coupon bundle and double reward points.

Beyond the 24-month interest-free deal on new devices, Shanghai Pudong Development Bank Co.,Ltd. (600000) is adding overseas spending perks for primary cardholders participating in the iPhone promotion. For example, after linking their card to Apple Wallet, customers who make their first overseas transaction with Apple Pay (including in Hong Kong, Macau, and Taiwan) between September 16 and December 31 can earn a 1% cash rebate on every purchase, capped at 100 yuan per month.

Notably, the iPhone official website's installment service now integrates multiple banks, including Bank of Communications, Bank of China, China Merchants Bank Co.,Ltd. (600036), China Citic Bank Corporation Limited (601998), Shanghai Pudong Development Bank, Jiangsu Bank, and Bank of Nanjing. According to Apple's official information, all partner banks provide 3-, 6-, and 12-month installment options, with some extending up to 24 months.

Commenting on the intensified bank marketing in the premium 3C segment, a credit card center executive noted that the industry has moved past its high-growth phase into a cycle of deep portfolio cultivation and efficiency enhancement, making new customer acquisition and retention increasingly challenging. The 3C high-end consumption scenario centered on new iPhones, however, offers high-quality customers, strong spending intent, and stable transaction volumes, making it a prime target for installment businesses.

According to Gao Zhengyang, a special researcher at Subsun Bank, banks are concentrating on premium 3C consumption scenarios because these purchases involve higher transaction amounts, standardized products, and concentrated buying periods, making them well-suited for installment plans. Additionally, new iPhone launches carry top-tier buzz, allowing banks to leverage the hype to efficiently reach younger demographics, boost card activity and transactions. The product release also creates a short-term traffic gateway, potentially driving engagement with points programs, payment services, and other retail financial offerings.

Wang Pengho, a senior financial industry analyst at Bocom Consulting, echoed this view, noting that the 3C customer base is of superior quality. With overall credit card scale under pressure, iPhone buyers generally have strong credit profiles, low default risk, high transaction values, and a strong inclination toward installment plans, making them a scarce customer segment. Through new-device installment campaigns, banks can boost installment fee income, stabilize their installment business base, and simultaneously reactivate existing cardholders, increase card usage, and acquire customers cost-effectively through hot topics while defending market share in high-value online consumer finance.

The battle over credit card customers is fundamentally a fight for the value of the existing portfolio. Data from the People's Bank of China's Second Quarter 2026 Payment System Overview shows that as of the end of the second quarter, national credit and quasi-credit cards totaled 677 million, down 10 million from the first quarter, continuing a contraction trend. This decline, combined with shifting consumer habits, has reduced reliance on card swiping. Mid-2026 reports from listed banks reveal a common theme among major issuers: a universal drop in loan balances. Among the six large state-owned banks, credit card loan balances all declined in the first half of 2026. ICBC saw its balance fall to 597.157 billion yuan by end-June, down 14.39% from end-2025. Postal Savings Bank, despite having the smallest balance at 189.415 billion yuan, saw a 9.56% half-year contraction. Bank of Communications, China Construction Bank, and Bank of China reported balances of 485.319 billion yuan, 934.714 billion yuan, and 449.195 billion yuan, respectively, all with declines exceeding 7%. Agricultural Bank of China saw its balance fall 4.03% to 815.849 billion yuan, the mildest drop among the large banks.

Joint-stock banks are also feeling the squeeze. China Merchants Bank, often dubbed the "retail king," saw its credit card loan balance fall 5.13% from end-2025 to 890.908 billion yuan. Huaxia Bank saw a 9.06% decline to 137.391 billion yuan. Industrial Bank, Minsheng Bank, China Everbright Bank, Shanghai Pudong Development Bank, and CITIC BANK (00998) all reported declines ranging from 2% to 6.5%. Zheshang Bank saw its credit card (consumer finance) loan balance fall by 1.402 billion yuan to 32.275 billion yuan from the start of the year, while Ping An Bank Co.,Ltd. reported a slight 0.7% decrease in receivables compared to end-2025.

In contrast to the uniform balance declines, asset quality is showing a polarized picture. Large state-owned banks are facing mounting upward risk pressure. Bank of Communications and ICBC have credit card non-performing loan (NPL) ratios above 5%, at 5.68% and 5.37%, respectively, up 0.59 and 0.76 percentage points from end-2025. China Construction Bank, Bank of China, and Agricultural Bank saw modest increases of 0.18, 0.19, and 0.17 percentage points, respectively. Only Postal Savings Bank held its NPL ratio steady at 1.45%. Among joint-stock banks with disclosed data, China Citic Bank and Ping An Bank were among the few to improve asset quality, while Industrial Bank, Minsheng Bank, China Merchants Bank, and Shanghai Pudong Development Bank all saw their NPL ratios edge higher from the prior year-end.

"Overall, the industry's focus has shifted from scale expansion to improving customer quality, asset quality, and per-customer profitability," Wang Pengho said. Looking ahead, banks will continue to clean up dormant cards and multi-credit accounts, and new card issuance standards will remain stringent, making a return to high-growth issuance unlikely. The scale of credit card operations will face overall pressure but see structural optimization, with total outstanding balances slowly declining. Banks will increasingly allocate resources toward low-risk physical consumption installments while reducing exposure to high-risk cash-based installment products.

Gao Zhengyang added that total card issuance is likely to keep contracting for some time. Banks will become more proactive in shedding low-activity, low-contribution customers and concentrate resources on high-frequency spenders, high-quality segments, and core use cases. Consequently, the industry will place greater emphasis on active cardholder numbers, effective transaction volume, and per-account revenue contribution.

The iPhone installment war is merely a microcosm of the broader transformation underway in the credit card industry. With card issuance plateauing and asset quality under pressure, banks are being forced to abandon the old "volume equals victory" model and pivot to refined scenario-based management. The core challenge now facing every bank is how to genuinely reshape the value of their existing portfolios. As one credit card executive put it, growth in the past came from new card issuance, but today, managing the existing customer base is the primary focus. Banks should deepen their presence in quality vertical scenarios, embedding installment services into genuine consumption chains rather than simply competing on interest rates. High-ticket durable goods like premium 3C, major appliances, and auto trade-ins naturally lend themselves to installment plans with stable customer demographics.

Moreover, banks should aim to convert one-time installment transactions into long-term customer relationships. Some banks are already introducing various benefit programs that go beyond the installment itself, encouraging everyday card usage and boosting loyalty. As Gao Zhengyang suggested, banks could focus on building scenarios around both large-ticket essential purchases and high-frequency upgrades. For high-value scenarios, automotive and aftermarket services, home furnishing and renovation, and premium healthcare are promising areas. These segments feature high transaction values, clear installment demand, and customer profiles consistent with premium 3C buyers, making them suitable for absorbing quality installment demand.

For high-frequency scenarios, banks can target boutique travel, fitness and wellness, and quality dining, using embedded scenarios to drive card activity and retention. Future credit card operations should build an ecosystem around customers' real consumption needs, leveraging merchants, platforms, and rewards systems to boost engagement, then apply customer profiling for precise credit decisions and differentiated operations. This approach could expand the installment business and enhance the overall value of existing customers. Wang Pengho also highlighted several physical consumption scenarios beyond premium 3C worth pursuing: first, automotive-related spending covering vehicle purchases, maintenance, and EV charging, given the stability of car owners; second, large-ticket durable goods like home renovation and appliance trade-ins, which involve high per-transaction amounts and longer installment cycles; and third, tourism, wellness, and premium services designed to increase transaction frequency among existing cardholders, revive dormant cards, and create a diversified scenario landscape.