Why buying iPhone 17 on EMI in Dubai is not for everyone

Ah, that tricky moment when something seems too good to pass up… only to turn into a total headache later. That’s how Dubai-based Sarvesh Singh remembers his first EMI experience. A corporate communications professional, he recalls splurging on an expensive smartphone a couple of years ago and choosing to pay in installments.

“The worst part was that I was in a fresher’s job, so my salary wasn’t even high. On top of that, I completely forgot about other expenses like rent and groceries. By payday, I would be left with practically nothing,” he admits.

His advice: “Be sensible with EMIs. Make sure the payments fit your salary and account for all your other expenses.”

Nevertheless, EMI’s have become a go-to method for purchasing big-ticket items like smartphones, laptops, or luxury gadgets. At first glance, the appeal is obvious: why pay Dh5,000 in one go when you can break it into 12 or 24 months of manageable installments? And with the recent luxury items like an iPhone 17 launching, there’s more buzz of ‘I’ll buy it in installments’.

To iPhone 17 or not to iPhone 17?

Kartik Iyer, a personal finance content creator (Your Financial Wingman) breaks it down: "The new iPhone costs over $1,500—about 5,000–6,000 dirhams. For many, that’s half a month’s salary. Easy EMIs make it feel affordable, but in reality you’re borrowing from tomorrow to pay for today. And let’s be clear: a phone is not an asset. It loses value the moment you unbox it."

He adds, "Most people who buy iPhones on EMI are the ones who can’t afford them upfront. That’s the problem. If you aren’t comfortably investing 5,000 dirhams a month into assets, you shouldn't spend the same amount on a liability." Iyer concludes, Apple will launch a new iPhone every year—you don’t need to fall for it every year. Live for a few years like most people won’t, so you can live the rest of your life like most people can’t.

Should you do EMI's at all?

Jay Adrian Tolentino, a financial coach based in Dubai, explains, “EMIs can feel convenient at first, but problems often arise when the bills start piling up.” He adds that people should always be intentional with their purchases, especially when using credit cards. “Buying items that quickly lose value, like the latest gadgets, can become costly if you’re borrowing to pay for them.”

One of the most common behavioural traps as he says, is anchoring bias. When we see the small monthly EMI amount, our brain focuses on affordability and tends to ignore the total cost. This makes it easy to justify purchases we don’t really need, and over time, it can lead to accumulating more debt than expected.

Tolentino advises avoiding debt for depreciating items, noting that it limits your ability to practice delayed gratification, a key habit for building long-term wealth. EMIs can make sense for urgent, career- or business-related purchases, as long as you can comfortably afford them.

The false sense of affordability

Sonal Chiber, Senior Consultant, Crisil Coalition Greenwich (an S&P Global company), who works with financial institutions and industry leaders on insights around banking, lending, and customer advisory, acknowledges that no doubt, EMI’s are convenient, and hassle-free. They ease liquidity and spread expense into manageable outflows. “But that convenience can create a false sense of affordability. "The key is distinguishing between interest-free EMIs, which can be cost-efficient if managed wisely, and those with hidden charges or high interest rates that inflate the total cost,” she says.

People should be wise to use EMIs for essential, high-value purchases or investments that add long-term value—such as education, healthcare, or durable household items. She warns caution if EMI’s are used for depreciating, or discretionary spends like gadgets, luxury goods or lifestyle expenses. “That’s what I call debt creep,” she explains.

Do the math

As Konstantin Vladimirovich Tserazov, a Former Senior Vice President at Otkritie Bank explains, EMI's were popular for quick buys like gadgets or appliances, but they always told clients to do the math first. "For example, financing a new high-end smartphone — say, the latest model with a sleek design, better battery, and sharper screen — might seem appealing, but it loses 20-30 per cent of its value fast." Spreading payments with an EMI can feel manageable, but if you can save up and earn in a deposit instead, that’s often the better move.

 No-cost EMIs work well for essentials, letting you keep cash in a savings account. But high-interest ones at 12-18%? They stack up quick, especially if you miss out on upfront discounts by not saving up.

The psychology of relaxing around EMI’s:

This ties directly into the psychology of spaving—a blend of ‘spending’ and ‘saving’. ” This exploits our tendency to prioritise immediate rewards over long-term benefits. There’s a joy of ‘saving’, but in reality, we tend to make decisions that compromise that security further, as psychologists such as Wesley Kew and Grace Priscilla had told us.

Moreover, spaving is all about present bias. We get a dopamine rush from seeing a discount feels like a reward, convincing us we’re financially savvy while secretly draining our wallets. Cognitive dissonance also plays a role: we rationalise purchases by focusing on the perceived savings, telling ourselves, ‘I’ll use it someday’ or “I saved Dh200, so it’s fine.” Moreover, there’s a sense of FOMO and suddenly that limited-time offer triggers instant action—even if you don’t need the product.

'A sense of financial literacy'

There needs to be the ability to understand and plan your financials. Buy-now-pay-later, doesn't make that easier, explains Christoph Koster, CEO of ruya, the UAE’s first digital-first Islamic community bank. "It has enabled many people to afford things that they wouldn’t usually be able to afford; or buy more of the things they would usual buy: a Harvard study found the average basket size of BNPL users to be on average 14 per cent higher," he explains.

He continues, "So we believe it helps our customers to distribute large one-off necessary payments, such as rent or school fees, into monthly installments. But when customers choose to buy luxury items in installments, or pay monthly expenses in BNPL fashion, then those installments can quickly add up and eat into a customer’s monthly income."

Risk of overspending

Here’s the flip side: EMIs can encourage overspending and financial overcommitment. When the monthly payment feels small, it’s tempting to buy multiple items on installments. With credit card EMIs or flexible finance schemes, and suddenly, what seemed manageable becomes a tight juggling act. Psychologists warn that this can create a false sense of financial comfort, leading to stress later if income or spending patterns change.

Pain of paying versus perceived affordability

Paying a large sum upfront triggers what psychologists call the ‘pain of paying.’ The immediate deduction from your bank account is tangible and emotionally jarring. EMIs, on the other hand, reduce this pain by stretching it over time. Seeing a smaller monthly deduction, say Dh416 instead of Dh5,000—makes the purchase feel psychologically lighter, even if the total amount paid is higher due to interest.

The illusion of ‘free money’

Installments often make people feel like they’re spending less than they actually are. This is partly due to the temporal separation effect: The immediate cost seems small, so the mind underestimates the overall financial impact. Some buyers even perceive interest-free EMIs as ‘free money,’ encouraging purchases they might not have considered otherwise.

Instant gratification meets delayed payment

EMIs satisfy a powerful human drive: Instant gratification. You get the product immediately, without having to save up over months or years. This taps into the brain’s reward circuitry, offering immediate joy while postponing the financial discomfort. The result: A highly persuasive formula for spending.

 Budgeting and mental accounting

On the positive side, EMIs can help with structured budgeting. Breaking a payment into smaller chunks allows people to plan their finances better, fitting a high-ticket purchase into existing monthly expenses. Some also treat EMIs as ‘prepaid expenses,’ which makes them easier to digest mentally, even if it subtly increases total spending over time.

So, what is the solution?

Chiber recommends keeping total EMI obligations under 30–40% of monthly income while safeguarding savings and emergency funds. It’s not just about affording an EMI today—it’s about ensuring future cash flows remain comfortable.

Tolentino adds personal rules for buying non-essential items:

•  Wait at least a week to let emotions settle.

•  If still needed, choose the best quality within budget.

•  Look for a deal, either on sale or secondhand.

•  Save up and pay in cash whenever possible.

This approach helps avoid impulsive, debt-driven purchases while still leaving room for thoughtful spending.

So, should you buy the iPhone 17 on installments? The answer depends on your financial situation and mindset. If you can comfortably fit the monthly EMI into your budget without cutting into essentials or savings—and if the phone will genuinely support your work, productivity, or long-term use—installments can make sense.

However, if buying it on EMI would stretch your income, lead to additional credit card debt, or tempt you into other unplanned purchases, it’s better to wait and save up. After all, the appeal of instant gratification is powerful, but true financial wellness comes from deliberate, mindful decisions rather than the lure of a shiny new gadget. In other words: enjoy your tech—but don’t let it come at the cost of your financial peace of mind.