Apple’s disruptive mobile payments could threaten Google

“As Apple’s (AAPL) shareholders are anxiously awaiting tonight’s earnings call, there are two extremely important items to remember,” NYC Trader writes for Seeking Alpha.

“No matter what happens tonight, Apple is in good shape to tackle a general market that has seen an already rocky 2014,” NYC Trader writes. “If irrational activity causes Apple’s price per share to drop, since 30% of the company is made up of cash, Apple has an excellent opportunity to buy back shares at a lower price (less cash needed to purchase same amount of shares).”

“Additionally, 2014 should be a revolutionary year for Apple,” NYC Trader writes. “Shareholders have been eagerly awaiting new products, which should finally be arriving this year. Any forward guidance might not include the impact new products would have on Apple in the longer term.”

“In this article I will focus on one such new product that I believe will truly revolutionize a growing industry,” NYC Trader writes. “The way I see it, in addition to having the capability of being an alternative to PayPal, Apple might not necessarily be betting on an enormous revenue source from a Payments division. Instead, Apple could use the payments system to attack Google’s (GOOG) advertising revenue model that is currently in some form posing as a competitive threat to Apple’s hardware model.”

Read more in the full article here.


    1. Hear Hear….. However …. Under the current regime Apple would be slapped silly with monopolistic banking business practices. What irony. Who has one of the most secure websites on the internet? Oh yeah that would be AAPL. It all comes down to (1) One talking point.

      Who do YOU “Trust”?

      JP Morgan? Not a Chance. Wall Sick is the next Enron. It is all a SCAM.

      The Bank of Apple

      It has such a good ring to it.

      Slogan “Who Do You Trust?”

      Certainly it Ain’t Gaagle or The DOJ.
      Welcome to “The Fragmented States of Androidica” it’s a Fckin Shame that Steve Jobs is not with us to RIGHT such ills of our globe. Yeah he was a hard ass… If you were not an A player you were TOAST! What type of players taint global governments?

      Yeah. I made my point. BOZOS with an entitlement mentality.


  1. … Instead, Apple could use the payments system to attack Google’s (GOOG) advertising revenue model that is currently in some form posing as a competitive threat to Apple’s hardware model…

    Exactly. NYC Trader gets it. Let’s see what Tim Cook does. Is he simply going to let Apple remain Google’s biatch or is he going to fight back for what was rightfully Apple’s? Apple leaving Google’s search engine and ad business untouched has to be the stupidest move ever. Apple is still a powerhouse earning machine of a company. Think of Apple’s huge reserve cash pile as a LGM-30 Minuteman missile sitting in a silo ready to go. All Tim Cook has to do is give the launch codes to target Google and let it fly and let Google’s 3 Stooges shed tears of blood.

    1. Google’s still the best search engine by far. I take them for granted until I spend a week with some other engine, which I have done several times. What I want is always in the top 10 search returns for google. Not so for anyone else. Until that changes google will ring as king.

      That said, a truly intelligent, inquisitive and fast Siri would be a leapfrog over google’s domain. You could say, “what’s the history of Hell?” And it would scan results instantly, group them into different categories and then ask, “Do you mean a city or village named ‘Hell,’ like Hell, Michigan? Or are you referring to the hell of popular culture, or holy scriptures?”

      THAT would be so killer, and it wouldn’t need the awesome algorithm Google’s developed because the relational responses would clarify your interest.”

  2. I would rather Apple keep their payment system as simple and narrowly focused as possible. Expanding Apple’s already gigantic payment system would make it an even more tempting target for scams. Letting third party vendors in multiplies the number of security issues possible, that could damage Apple’s hard earned consumer confidence in its payment system. Finally, there’s no pressing unmet need for this – so the only motivation Apple has to do this is greed.

    1. “Finally, there’s no pressing unmet need for this”

      I think people probably said the same pre-iPhone, and pre-iPad… and pre-iPod, and pre-all in one iMac, and pre-Apple’s gui, and…. and….

      1. I wasn’t saying that pre-iPhone – I hated my phone back then. Wasn’t just the lack of real Internet or good apps – phones just were not well designed. Don’t know many people who were dumb enough to dismiss the iPhone the way Ballmer did. The iPad was a great idea – felt like that much was obvious minutes into Jobs revealing the iPhone. iMacs are my favorite computers of all time. GUI’s are what got me into computers – they obviously do more for most people than a command line ever will. I wasn’t there to see that first GUI at Xerox PARC with Steve Jobs, but I feel like I would have been thoroughly impressed if I had seen that back then.

        I don’t see any parallel between non-iTunes online payment and a pre-iPhone, pre-iMac, pre-iPad, pre-iPod, or pre-GUI world. When I buy stuff on Amazon or a thousand other places with online payment, it feels totally painless and extremely convenient. Apple could probably make it slightly easier, but I would barely notice the difference.

        Wish we had some common ground – disagreeing with every single thing you said makes me feel like a dick.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.