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Apple Prepares 'Apple Pay' Credit Card To Offset Slowing iPhone Sales (marketwatch.com)

Posted by EditorDavid on from the pay-different dept.

An anonymous reader quotes the Wall Street Journal: Apple and Goldman Sachs are preparing to launch a new joint credit card, a move that would deepen the technology giant's push into its customers' wallets and mark the Wall Street firm's first foray into plastic. The planned card would carry the Apple Pay brand and could launch early next year, people familiar with the matter said...

As new iPhone sales growth slows, Apple is focusing on services such as mobile payments, streaming-music subscriptions, and App Store sales. Apple Pay, which generates revenue on each transaction, is a key contributor, but adoption has been slower than executives hoped... Apple could take a larger cut of mobile payments from the card if it is used for purchases, the person said. Currently, when a consumer pays for a purchase using the digital wallet on the iPhone -- regardless of what credit card the customer charges -- Apple receives 0.15% per transaction. Apple could more than double that under the agreement with Goldman, one of the people said.
The deal also reportedly includes having Goldman Sachs offer loans to customers at the Apple Store.

6 of 85 comments (clear)

  1. Really? by methano · · Score: 2, Insightful

    Really? Is there no Apple news that can't be twisted into an "Apple is dying" story?

    1. Re:Really? by Anubis+IV · · Score: 5, Insightful

      The funny thing here is that they’ve managed to twist a record-breaking quarter into a bad thing. Check the summary and you’ll see that it contradicts the headline. The summary makes it clear that it’s slowing iPhone sales growth, not slowing iPhone sales. Sales are still up, they’re just not up by as much as they were before the market became saturated.

    2. Re:Really? by ShanghaiBill · · Score: 2

      To be fair, slowing sales growth means that the growth in the stock price will also slow.

      Nope. Apple has a PE of 16. The average for all stocks is about 25. So investors were already expecting a slowdown in sales, and it turns out that growth slowed LESS than expected, so the share price went UP ... more than 10% since the earning report went public on May 1st.

  2. Slowing iPhone sales by Powercntrl · · Score: 2

    Have they considered just lowering the damn price?

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    DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
    1. Re:Slowing iPhone sales by Aighearach · · Score: 2

      You're holding your wallet wrong.

      It is a bit misleading, though; they're not really doing something new with the credit card, they're just switching which bank they partner with for it. \

      The loans are the new part, but it sounds like it is a small program.

  3. Good Bye Barclays by Kozar_The_Malignant · · Score: 2

    It's more about capturing revenue that currently goes to Barclays. It's also about spreading the Apple Pay service.

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    Some mornings it's hardly worth chewing through the restraints to get out of bed.