“The new Apple credit card could become a ‘significant player in the U.S. card market,’ HSBC says in new note, and that’s good news for partner Goldman Sachs (GS) as well,” Teresa Rivas reports for Barron’s.
“The new credit card is designed to work seamlessly with the Apple Wallet, and includes plenty of perks, including cash back rewards without annual, late, or international fees,” Rivas reports. “On Thursday, HSBC’s Nigel Fletcher took a fresh look at the Apple Card. While the firm has Hold ratings on both Apple and Goldman Sachs, he’s optimistic about the ‘large potential captive target market,’ that could ultimately see half of Apple’s 146 million-strong adult installed U.S. user base adopt the card in the coming years.”
Rivas reports, “He’s estimating potential net income of $300 million the first year, climbing to $1.5 billion by year five.”
MacDailyNews Take: The results of our current poll speak volumes:
Source: MacDailyNews Poll, March 25 – April 4, 2019
The biggest news of Apple’s “It’s Show Time” event, by far, was Apple Card.
What was our very first reaction to the physical Apple Card?
“Yes, we want that physical card. We’ll use the digital card via our Apple Watches whenever possible, of course (more cash back), but we want that titanium, laser-etched card!” – MacDailyNews, March 25, 2019<
Hundreds of millions of Apple users will have or have already had the same reaction. Apple is about to generate huge profits out of thin air.
“Apple just revolutionized another industry with Apple Card”
I’m not so sure. I think this credit card might be the Motorola Rokr of Apples credit card plans.
The “iPhone” of credit cards comes when they completely supplant the existing card networks. It won’t take much for Apple to, brick by brick, replace Visa and MasterCard with something much better.
I get your point, di, but this is a critical intermediate step in moving from traditional credit cards to virtual credit cards. With Apple Pay, the new titanium card is a safety net for people more familiar with swiping (now inserting) cards at point-of-sale terminals.
As you point out, however, there is another step still to be taken – eliminating the credit card intermediary. The next step is Apple Bank.
Of course they can make a charging mat. They just can’t safely and economically make a mat that allows its owner to fast-charge three disparate devices thrown on the same surface in random locations and orientations. If that were easy, somebody else would have developed one and brought it to market after the Apple announcement. A charging mat without those features competing with dozens of identical products in a generic market isn’t worth the company’s time.
Should be called HyperCard… 😉
Wonder how many of those polled that indicated interest only want to get the Apple Card to collect the physical card.
“Apple just revolutionized another industry with Apple Card”
I’m not so sure. I think this credit card might be the Motorola Rokr of Apples credit card plans.
The “iPhone” of credit cards comes when they completely supplant the existing card networks. It won’t take much for Apple to, brick by brick, replace Visa and MasterCard with something much better.
I get your point, di, but this is a critical intermediate step in moving from traditional credit cards to virtual credit cards. With Apple Pay, the new titanium card is a safety net for people more familiar with swiping (now inserting) cards at point-of-sale terminals.
As you point out, however, there is another step still to be taken – eliminating the credit card intermediary. The next step is Apple Bank.
Why can’t Apple open banks?
They can’t even make a damn charging mat.
Of course they can make a charging mat. They just can’t safely and economically make a mat that allows its owner to fast-charge three disparate devices thrown on the same surface in random locations and orientations. If that were easy, somebody else would have developed one and brought it to market after the Apple announcement. A charging mat without those features competing with dozens of identical products in a generic market isn’t worth the company’s time.