According to analyst Amit Daryanani at Evercore ISI, the new Apple Card and higher adoption of Apple Pay could drive $5 billion in revenue over the next few years, .
Evercore ISI’s Amit Daryanani… wrote in a note on Wednesday that “investors continue to underappreciate” the company’s services.
He wrote that he loves the new Apple credit card… [which] along with more merchants and transit authorities accepting Apple Pay, will drive more people toward the service. “We estimate iPhone owners use Apple Pay for less than five percent of their total credit/debit purchases, though our analysis suggests [more than] 40% have Apple Pay enabled on their iPhone,” he wrote.
If more people start using Apple Pay because of the card, it could reach revenue of $5 billion in the next few years, according to Daryanani. That is about 80 cents to $1 in incremental earnings per share. That estimate assumes that Apple Pay would be employed in 20% of total payment transactions by iPhone users.
MacDailyNews Take: We concur, obviously:
“Apple is finally really incentivizing the use of Apple Pay. What a great idea! 😉 ” — MacDailyNews, August 8, 2019
Apple, give us a reason to use Apple Pay beyond looking like tech dorks in front of the line at the register. What’s the incentive to use Apple Pay? There is none besides looking like a flaming nerd. As if Apple doesn’t have any money. That, inexplicably, is how they approach Apple Pay. Hello, Tim? Eddy? Talk to some people who actually go to stores and shop for things, please.
Incentivize its use! Give Apple Pay users a percentage of every dollar spent via Apple Pay to spend at Apple Stores. Something. Anything! Get people used to using it first. Sheesh. It’s really not that difficult. It really isn’t. — MacDailyNews, August 6, 2015
Imagine at the special media event to introduce the next-gen iPhone next month, Apple CEO Tim Cook says something like this:
“And, of course, the new iPhone works with Apple Pay and, starting today, for every $100 you spend using Apple Pay, you get $1 off at Apple retail and online stores. So, spend $100 on groceries using Apple Pay, you get $1. Spend $300 on a plane ticket using the Delta app, you get $3. Use Apple Pay in your ExxonMobil Speedpass+ app to buy your gas. It all adds up! By the end of the year, you’ll likely have quite a discount on your next iPad, Mac, or iPhone!”
Would you use Apple Pay more if Tim Cook said something like that? We know we certainly would. — MacDailyNews, August 5, 2016
There is no better way to pay than with Apple Watch and Apple Pay. Two simple things could turbocharge Apple Pay usage: Better (or actual) signage at the point of sale and incentives for using Apple Pay. Imagine Apple Pay usage if Apple simply offered $1 to spend at the Apple Store for every hundred spent via Apple Pay. — MacDailyNews, November 30, 2016
Received my physical Apple Card, yesterday.
Hoping there are incentives to purchase the next iPhone. At least 2%+
3% for Apple.com and Apple Store purchases…
Only if people use it. I have no intention of doing so. Interesting admission that no one is using Apple Pay, as well. This is simply an area that the Valley really needs to get their grubby paws off of. Forget BitCoin, too, cash is still best, and in my own experience as a vendor, still preferred.
My titanium Apple card didn’t work in a Square terminal yesterday. I like using Apple Pay (if they accept it) but will always keep cash and a backup card with me.
According to the MDN survey, over 20% of Apple fans on this site are not interested in rushing out to get the card.
If Goldman Sachs had not been involved, I may have been interested. But I have scruples and can make superior financial deals elsewhere, with the convenience of Apple Pay or Peer-Peer payments if I choose, from several different trustworthy credit unions. GS can rot in hell with the other consolidated Big 5 corrupt banks.
Significant revenue growth isn’t likely, at least not directly from AppleCard. As iPhone sales continue to decline, Apple’s revenue will fall or at best stabilize. Depending upon some credit card or ApplePay for revenue growth is grasping for straws in order to stay afloat. Apple is going to have to do much better than that. Apple needs to look around for some cloud computing business they can acquire if they’re really looking for growth. It’s somewhat amusing how Wall Street values The Cloud above all else but that’s just how it is. It’s also odd how Apple keeps chasing after things that Wall Street has little interest in.
Apple needs some product or service that the enterprise can use because Apple has already tapped out their consumer base. Corporations are the big spenders now, so maybe they can afford $1000 iPhones for all their employees. If Apple isn’t going to go after Indian and African consumers then they might as well give up on their iPhone business. It just seems absurd for Apple to pass up on tens of millions of potential iPhone customers while Apple is still valued for being The iPhone Company.
Anyway, this coming quarter from Apple isn’t exciting analysts, so it will be interesting to see what happens. Is Apple still buying back stock? The talk of tariffs seems to have thrown Apple stock into disarray. Roller-coasting from $200 to $210 and back again on a tweet or two.