Apple wants to take a bigger bite out of your wallet and is said to be working with Wall Street titan Goldman Sachs on a new credit card venture.
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The card could launch as early as next year, according to a report by The Wall Street Journal, which cited people familiar with the matter. It will be compatible with Apply Pay and the Silicon Valley tech company would replace its ongoing rewards-card partnership with Barclays.
While the pair are still working through the finer details regarding customer benefits, The Journal noted that Goldman will offer services like in-store loans to Apple customers buying the brand’s tech products.
The partnership is a sign that Goldman still sees opportunity in the credit card segment, Matt Schulz, CreditCards.com's senior industry analyst, said in a statement. But beyond near-term profitability, it also shows that the bank is looking to leverage the power of Apple's brand.
"It's about ... potentially establishing long-term relationships with Apple's highly desirable customer base, who tend to be younger than your typical Goldman client, more affluent than the average American and famously loyal to Apple," Schultz said.
The move comes as Apple is experiencing weakness in one of its chief sources of revenue: iPhone sales. During its most recent quarter, the tech giant reported iPhone sales of 52.2 million, falling short of analysts’ expectations of 52.3 million.
Among the factors believed to be deterring some customers from purchasing new iPhones is cost. The average price-point for iPhones rose 11% to $728, driven by the release last year of the $999 iPhone X. In China in particular, customers have increasingly opted for lower cost options, from domestic manufacturers like Xiaomi and Huawei.
Nevertheless, the company is inching closer to boasting the first $1 trillion market value.