Apple Card by Goldman Sachs

[Anonymous]

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@Anonymous wrote:

I actually wouldn't even be surprised if Apple and Goldman Sachs have worked this in a manner that it is available for *nearly* everyone with an iPhone. Even if it's just for the beginning, they're going to want to push this out strongly. And although they wouldn't want to for any extended period of time, I can see Apple as being strong enough to be willing to absorb some of the loss in order to get maximum penetration of the market and wouldn't be surprised if that's somehow tied into the relationship that drove GS to issue their first CC. 

Just think of the datamining possibilities there. Apple is constantly innovating, and being able to see what people spend the majority of their money on, what bills people have along with how people pay them...this could lead Apple into pushing into supporting roles that they might have never even considered. They've done well to grow in their relatively 'limited' scope so far but there's going to be a need to grow beyond that and this could be the key to that door. 

I'm the sole Galaxy owner in my home and can understand the cult-like mentality that everyone else has as I watch them using their iThings. Just looking at how much Apple has permeated society makes me ridiculously intrigued to see how this all pans out. Even though it doesn't really play into my card portfolio I can definitely see how valuable this can be in the real world outside of the niche of churners and credit/CC junkies. Slightly jealous if I'm honest with myself.

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If this does end up being the case and they are BK friendly, I would absolutely make this my #1 card to get for my rebuild. Imagine the game changer for people with previous credit problems who have made a comeback. Cap1 and Discover would have some very potent competition. Someone like me... I want rewards but I really don't care to manage so many different cards just to get them. 

I won't be holding my breath or anything, but I will be keeping my eye on it over the next year while my scores go up. If it does look promising, it will replace the 12 month plan to try for Discover IT.

[Anonymous]

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@wasCB14 wrote:

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@Anonymous wrote:

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@iced wrote:

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@Anonymous wrote:

If Apple makes a no fee card accessible to everyone, it will be ground breaking but let’s face it, Apple is a luxury brand and they want luxury customers. I would be blown away if they hand these out like candy. 

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A brand doesn't have ~42% share in any market (phones) by only targeting luxury customers.

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Not true. Very easy when you support 5 years of devices. Apple’s marketshare would be decimated if you just looked at X and newer. 

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I don't know enough about smartphone features to do an "Apples-to-apples" comparison.

But I think I can reasonably say that Samsung phones aren't exactly cheap, either.

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At least Samsung has cheaper options. The cheapest new in box device that Apple is still selling and supporting (there are strong rumors that iOS 13 won’t be supported on 6 and under) is the iPhone 7 from 2016 which starts at $449 direct from them. You can get an entry level Samsung for less than $150. That is leaving out the discussion of sacrifices along the way, it’s just something worth pointing out that the cost of entry for a brand new device isn’t even comparable between Apple and Samsung. 

[Dilbert934]

Blah Blah Blah...  Just more stuff for fanboys.  I already get 1.75% back on all purchases through BOA, and 5.25% back on whatever monthly category I choose.  I also dispise the Apple closed ecosystem, so Apple Pay is out.  They're severly limiting their customer base by requiring Apple Pay for 2%.  In 2018, Android held 52% of the mobile phone marker, while Apple was at 45%.

You can get 1% back with numerous cards, not just Apple.

[Anonymous]

Hi,

Given that the retail-consumer Marcus line of the larger Goldman parent, only dates back to 2016, I suspect that we’ll see a pretty aggressive push as this seems to be their first major partnership/foray into retail credit card space.

I think that the Marcus line really is supposed to be seen as a more consumer-friendly entity as opposed to the rather “white shoe” image that their more traditional investment banking parent tends to be seen as. Just looking at their site, it’s a more clean, simplistic look, it does leverage off the more well-known Goldman Sachs name..

Therefore, I’ll bet that they won’t set the minimums too high initially.. but I do think that their risk profile will be set somewhere similar to that of Chase Freedom-like levels and not too much lower than that... my guess only.

I’m sitting with a low, low 700’s (and slowly growing) so this issue will be a key for me.

I agree that from just a “what doe it offer?” basis, I can’t say it’s too revolutionary— what I that might have been involved was something like a bonus of Apple Care (either free or a steep discount) for Apple purchases made with the card.. I really thought there’d be more tie-in with Apple retail... but time will tell.

[iced]

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@wasCB14 wrote:

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@Anonymous wrote:

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@iced wrote:

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@Anonymous wrote:

If Apple makes a no fee card accessible to everyone, it will be ground breaking but let’s face it, Apple is a luxury brand and they want luxury customers. I would be blown away if they hand these out like candy. 

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A brand doesn't have ~42% share in any market (phones) by only targeting luxury customers.

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Not true. Very easy when you support 5 years of devices. Apple’s marketshare would be decimated if you just looked at X and newer. 

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I don't know enough about smartphone features to do an "Apples-to-apples" comparison.

But I think I can reasonably say that Samsung phones aren't exactly cheap, either.

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This.

Expensive does not necessarily equal luxury. Apple tries to portray themselves as pioneers in new tech and breaking new boundaries ("Think Different" was their motto back in the stripey-Apple days), and that's a very different message than the exclusivity and higher barrier to entry that luxury brands typically exude. I don't remember fans standing in line for the first iPod, iMac, or iPhone because their favorite plastic-filled celeb flashed one from a yacht in the Maldives. Or only making 200 iPads by hand in an small shop in Italy and then sending offers to purchase invite-only. Those are the types of games luxury plays.

They want more people owning Apple products, not less. This card is part of that strategy. Find a new way to do something. Try to make that new way disruptive and innovative and appealing to young (and hopefully wealthy) people who will become hooked on the product for decades to come. Make that new and innovative way of doing things require the use of an Apple product.

[Anonymous]

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@iced wrote:

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@wasCB14 wrote:

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@Anonymous wrote:

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@iced wrote:

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@Anonymous wrote:

If Apple makes a no fee card accessible to everyone, it will be ground breaking but let’s face it, Apple is a luxury brand and they want luxury customers. I would be blown away if they hand these out like candy. 

---

A brand doesn't have ~42% share in any market (phones) by only targeting luxury customers.

---

Not true. Very easy when you support 5 years of devices. Apple’s marketshare would be decimated if you just looked at X and newer. 

---

I don't know enough about smartphone features to do an "Apples-to-apples" comparison.

But I think I can reasonably say that Samsung phones aren't exactly cheap, either.

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This.

Expensive does not necessarily equal luxury. Apple tries to portray themselves as pioneers in new tech and breaking new boundaries ("Think Different" was their motto back in the stripey-Apple days), and that's a very different message than the exclusivity and higher barrier to entry that luxury brands typically exude. I don't remember fans standing in line for the first iPod, iMac, or iPhone because their favorite plastic-filled celeb flashed one from a yacht in the Maldives. Or only making 200 iPads by hand in an small shop in Italy and then sending offers to purchase invite-only. Those are the types of games luxury plays.

They want more people owning Apple products, not less. This card is part of that strategy. Find a new way to do something. Try to make that new way disruptive and innovative and appealing to young (and hopefully wealthy) people who will become hooked on the product for decades to come. Make that new and innovative way of doing things require the use of an Apple product.

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You’re really beating the horse over my use of luxury when I am using it as defined by Webster - something adding to pleasure or comfort but not absolutely necessary - this is the definition of Apple’s existence. Hardly anybody can get by these days without a phone but nobody needs an Apple device or a Samsung device for that matter but Apple has always been a premium brand even before their smartphones. My point is the same as yours - Apple wants to attract the wealthy with their luxury products and get them to spend more on Apple products. 

People like myself with low income who buy an iPhone but builds his own PCs and doesn’t have any other Apple products except an Apple TV 4K he doesn’t use are not Apple’s target market — and I expect we will see that reflected in the UW on this card. I would love to be proven wrong but the $1099 device I hold in my hands right now doesn’t give me much confidence there. 

[Anonymous]

Don't really see an incentive to use this over my Fidelity 2% card. There are a ton of cards out there that beat this card out in terms of cash back rewards. Just seems to be a way of pushing their Apple Pay out more. Of course, this is still Apple and I am sure Apple and GS will be fine due to brand name and marketing.

[wasCB14]

Yes, Samsung has a "Galaxy J" product for $150...but most people buy the Galaxy S family.

https://en.wikipedia.org/wiki/List_of_best-selling_mobile_phones#2018

(Admittedly, not all included data have clear sources.)

2018

• Samsung Galaxy Note9 30 million units sold
• Huawei P20 16 million units sold
• IPhone XS 12 million units sold
• Samsung Galaxy S9 10 million units sold
• Samsung Galaxy S9 Plus 8 million units sold
• Samsung Galaxy s9 Lite 4 million units
• Others 50 to 65 million units sold

Note that "Galaxy J" does not make that list. The list would be even more distorted (giving J an even lower market share) if you looked only at sales in higher-income countries.

[CreditCuriosity]

Card basically really stinks and can do alot better with whatever insert 2%-3% card here( although there are worse cards out there!).  I love apple products, but ya no need for this although I think it will do very good with non credit savoy people and people that are apple fan boys/girls

[FinStar]

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@CreditCuriosity wrote:

Card basically really stinks and can do alot better with whatever insert 2%-3% card here( although there are worse cards out there!).  I love apple products, but ya no need for this although I think it will do very good with non credit savoy people and people that are apple fan boys/girls

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Just to piggyback on @CreditCuriosity's comments, let's keep this thread on topic which has started to slowly veer off.   Otherwise, this might find itself a home in SmorgasBoard.