Why Apple And Goldman Sachs Are Breaking Up
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- čas přidán 16. 12. 2023
- The Wall Street Journal recently revealed that Apple has requested to end its partnership with Goldman Sachs, the Apple Card’s exclusive lender.
Although it wasn’t something Apple wanted. Since, for them, the deal has been beneficial, fueling sales with Apple Card’s zero-percent financing, and encouraging users to stay in Apple’s ecosystem.
On the other hand, Goldman Sachs was losing money. So what happened? - Věda a technologie
I've received quite a few emails asking how I make my videos, if you're interested in learning about it in a detailed course let me know here: greg-s-site-7f5d.thinkific.com/
link looks like a scam lmao
this needs a high level of english!!!
lol
Amazon Pay card in India is successfully with similar card why cant apple
This shows that credit cards are not a good business unless the bank has all the rules in its favor
Credit cards are to banks what iPhones are to Apple. This shows what happens where two incompatible business models are smashed together. Not that I can cry too much for Goldmans - horrible company (but one that Apple was happy to climb into bed with less we forget)
Well, let's be fair. Taking systematic losses adding to 3 billion dollars in 4 years time only, simply is *not* a good deal. Whether you're a bankster or not.
Is this news? Business make money until all the rules ensuring they make a profit are removed?
My guess is Apple starts it own financial subsidiary to “do what the banks couldn’t”
@@Kane0123 if corporate history teaches us anything it’s just as likely banks will start making their own phones, computers et al
So in reality, Apple was being kind to humans rather than to banks! Now, that's refreshing!
If only it could’ve lasted…
Exactly, so Apple was looking out for their customers, Bad Apple😂😂
this further proves that companies only care about money as if it wasnt obvious enough before but this is exactly the reason why nobody is doing somethings to try to change it - well apple did and they tried and as its aparent it is not workin.. hopefully they can find someone else to keep it like this- cuz yea imo its so much better then normal banks..
No. They were looking out for their own profits.
@Wanted797 OK, obviously you're suffering from "ADS"...APPLE DERANGEMENT SYNDROME. Even if that was the case the customer still WINS in the end. It's hilarious how obsessed you Apple haters are with how much money they make🤣
I love how the Apple Card turned into such a huge loss because Apple made a fair, smart and transparent system for their users. I do however think the "everyone that applies should be approved" is a pretty terrible requirement.
Its easy for them when they're not the one paying the price
I don't honestly thing it is a terrible requirement.
For those who are good with money but rejected for whatever reason, shouldn't they be given a chance?
I, for example, have an excellent credit score here in the UK (the max on some sites) yet I've been denied credit without a reason, once.
@@whaletrain7070 Yeah but that comes with a lot of people who are terrible with money and are probably the reason why Goldman Sachs lost so much money.
Apples requirement could be for banks to be more lenient or have some cases that they feel should be approved even though banks usually wont. Theres probably a middle ground is what I'm saying.
I’m not even sure that’s accurate because the first time I applied I was rejected. After I got more credit history under my belt I applied again a couple years later and was approved.
@@whaletrain7070the credit score number isn’t the only thing they look at. How much you’re earning and how much you spend are big factors and how well you’ve kept up with previous loans and such.
You can get a perfect credit score by just using a credit card as a normal card and then paying it back all the time.
That’s what I did during uni
I use the apple card on pretty much majority of my transactions and I like that they're very transparent on how much to pay so you don't have to deal with interest. They're not out to trick you with various fees like banks do. Customer support is really good too as I can talk to someone in a matter of minutes and get a resolution fairly quickly. Hope they find a better alternative to this service cause I prefer this over all other consumer cards.
That's really nice ! Have you ever used it outside the United States ? I'm wondering if it's possible :)
Judging by your statement I am sure you would happily pay a monthly fee to keep all these extras. I would too but Apple Card isn’t even available in Germany. But considering the huge loss a bank faces with these conditions I think a small monthly/annual fee to use the card is fair. What do you think as a Apple Card user?
@@krill_inksanity I've used it (the titanium card) outside the States where they don't have apple pay, it just works like any other card on MasterCard network with zero transaction or exchange fees.
@@Martin-kn1cn I think that in the future we will say to our grandchildren "back in my day we had to wait for sometimes over 30 minutes before getting customer service, and we had to pay for that waiting too! You should be grateful for your free instant help by AI, trained to be able to solve 99.9% of all scenarios."
And I think right now we're at the beginning of that: taking free good customer service for granted because its being enhanced by automation wherever viable. (Which doesn't automatically mean chatbot, but also for example a smart back end)
I'd say keep it free, make it part of the appeal of Apple. Good customer service will get cheaper and better very soon anyway.
In Brazil, there is a bank with the same features, is called Nubank.
Banks when they can't abuse their clients : Imma head out
So you're saying that unless they keep making a multi billion dollar loss they are abusing the customers?
Tell me you know nothing about how anything works without telling me you know nothing about how anything works.
I don't deny that banks and credit card companies have shady and sneaky practices to get money out of their customers, but at the end of the day, a bank needs to make money and you do have to admit that some of the conditions put forth by apple are just too good to be financially sustainable.
It's the other way around tbh, it results in 400 credit score people being approved for the card and not paying the bills off.
@@Techtinkerer3Dthe losses mainly came from the approving everyone part, remove that and it eliminates 90% of the risk without affecting the fees or transparency
It’s absolutely hilarious that a $3 Trillion company has more ethics and is more beneficial to the customer than every bank in existence. But then again, almost every other company has more ethics and benefits than any bank.
That’s exactly how they became a $3 trillion dollar company.
They respect their customers because they have earned their respect for decades.
What I find hilarious is that you put apple on this pedestal of ethical superiority when they are a business operating under the exact same principles of a bank or any business; make money.
@@Uiru11 they're a business first. Yes. But they do right by their customers in many aspects because they know that keeps people coming back to Apple repeatedly in the future.
But like any business certainly there are things about them that are "evil".
@@laurenslee9134 Yes, so its in their best interest to appease the customer. By that same token, why is a bank the one which is lacking respect for the customer when they impose fees for issues arising from a lack of customer accountability?
Seems to me that the customer is simply ungrateful and spoiled to the point that the idea of facing punishment for not being able to borrow money responsibly is labeled as a lack of respect from the lender.
@@Boxingp4pbx what if I invested now...?
Good move..? I'm being serious. What's your thoughts & feedback on getting into Apple stock now.
Honestly, with all those requirements, it's insane that any bank would agree to it
Insane? No.
Reasonable, yes.
Here in the UK most of what Apple requested is day-to-day for us - no banking fees, cards with no foreign transactions fees, interest being confirmed before a purchase is made and support being delivered by a Web Chat of sorts.
What Apple here is in fact supporting the consumer with transparent pricing etc. the banks don't and that shows a much bigger problem for the end consumer.
It really just shows how Goldman Sachs can't do business in the consumer space - they're a business bank by trade.
@whaletrain7070 gotta say, we are lucky here in the UK with banking. You can do everything from your phone, from changing your details, request new cards, check credit score, apply to any kind of loans, open new accounts, statements and even deposit cheques by just taking a picture of it.
They are transparent, safe, no fees. Even something like not paying a monthly fee to keep accounts open doesn't happen in several countries, let alone earning interests by just using them.
Not even touching about other benefits they can offer.
@@whaletrain7070in the us most cards don’t have fees (that’s not something exclusive in the UK lol) but I think the real killer for gs was that everybody needed to be approved and the app specifically deterred people from paying interest.
@@whaletrain7070Banks make absolutely zero money off of that. Reasonable for the consumer yes, for business owners no.
Requests to do right by the customer borrowing the money? way to go Apple.
For people saying Apple should own a bank, they will not do that because they don’t want to take any risk.
It would be feasible for them to do that. Let me explain why:
-They can adjust their new offerings by offering 0% interest to those with a credit score of 790 and above. However, any missed payment will result in a 23.90% interest rate. They know those with a score less than 730 are at much higher risk, making the interest rate 26.99% with an annual fee of $99. They would be able to change the fine print at will. That leads to a second bullet point.
-The Apple Card is a luxury card. This is the first time anyone has heard of a titanium credit card. In addition to that, they'll be able to compete against American Express, Capital One, etc. Imagine if they introduced 5% daily cashback using Apple Pay and additional miles when you buy their products or subscribe to Apple One. If they were to do that, many of the major credit card companies would shit their pants.
How do I know this? I started with a credit card twelve years ago with an annual fee of $95.
Apple is the lender when people use it's Buy Now Pay Later. And though that's nothing compared to being a full-on bank, there is risk there.
@@Naviss thats barely a risk, its like less than 10% of a Bank's risk
@@Naviss yes, you’re right but the risk is very low because they choose who can buy with that option and what items you can buy with it. When that option applies, they check your eligibility first which means you can be denied that service. That is not the case with the bank they partner with because they want them to grant a credit card to whoever applies for it.
@@martinketchum Correct, which is why I said, "nothing compared to a bank". But that is a risk and if Apple didn't want any risk as the OP said, they wouldn't have started that.
they really held that bank by the balls
So basically, Apple didn't want to screw over their customers, but Goldman Sachs did, so they can make more money. Goldman Sachs ended up wanting out because they weren't able to nickel and dime their customers 😅
How do you expect any bank to work at a loss? Its easy for apple when they're not the one paying the price. Not wanting to get a multi billion dollar loss doesn't seem greedy to me.
Having systems in place to punish a lack of accountability/responsibility is not equivalent to screwing people over.
@@Uiru11 I dunno man, a foreign exchange fee is quite “nickel and dime” since like, you’re paying 15 USD to send a friend 10 USD?
@@auliamate so you have selective attention on that specific fee but not the others surrounding being late and irresponsible with being lent money?
That's how Apple saw it, but in reality it resulted in people with 400 credit scores getting the card and never paying it off.
Good on Apple for putting the consumer first on this one.
Thank you, Greg for the explanation as the news has really unruffled me. I have come to rely on the Apple Card almost exclusively because it is so much easier to use than any other card. I hope there is a good resolution to the problem for us consumers. It would be devastating to lose this facility!
Is the only credit card i have and that i need without it my life would literally be a mess
@@Yoskioyou better sort your life out quickly then 😮
@@yumsoup3377 i refuse
@@yumsoup3377 you are being overly dramatic! We have yet to see anything concrete, so we only know of rumors. Even if this was to happen, we would not be left out to dry. A solution for existing cardholders will be found as I believe it is Apple‘s name that is at stake!
Goldman Sachs doesn’t just get money from interest payments. They also make money each time the card is used. If you buy something for $100 Goldman Sachs only pays the merchant around $97 and keeps the rest.
thats how every card works mate. Mastercard, Visa, and AMEX, all work that way.
The whole issue should be an eye opener to people about CC as well. Making it easier for the customer without tons of fees isn't how banks make money. I do there there is extra loss on that from making the requirements lower but that probably pales from the number of people who aren't playing hundreds a month interest alone.
Please keep us updated on what happens with the card in the future
This.
.. you want a channel "Apple Explained" to keep you updated on "Apple" stuff?
1:02 This is the real reason.
They didn't get to where they are by being nice and friendly.
To be honest Apple has enough to have their own bank lol
Going to be very tough for Apple to find a replacement bank to accept those terms in this economy.
I accept it
Or in any other economy!
Most likely synchrony. They’re the king of subprime.
Maybe some other German Banks like the ones that would grant Trump loans.
Not getting political here but there were not many banking institutions who would do business with him.
They have 200 billion in cash, they could do it themselves.
This made me want to get an Apple card (not supported). Not having to pay international fees is great.
I've been impressed with my Apple Card. The interest rate is higher than my other credit cards, but Apple provides an easy-to-use tool to make sure I've paid off my balance, plus no foreign transaction fees like my other credit cards charge.
So, Apple wanted to treat credit card customers like people, and not endless sources of finance. Got it....
Its easy when they're not the one paying for it
@@Techtinkerer3D So? 🤡 The bank was being greedy
No I said it's easy for apple when it only affects the bank and not them@@mightnare3237
Not joking the apple credit card idea was too good to be true from the very beginning. As they announced this, I always asked myself where the drawback of this is and why no other company can offer such a unique service. Apple may find a new partner soon.
Is apply for the credit card and the interest were 27-35 did I mentioned I got decline ?
Apple should make a bank there own
Too many regulations once a tech company goes into banking. Apple will already be hit with a ton of regulations once AI and consumer data laws get updated. They probably don’t want more regulations. Besides, they want to offer the most competitive card at the expense of a partner bank’s reduced margins and not take the reduced margins themselves along with the increased default risk of approving all consumers. Apple wants to outsource that to a partner bank.
Agreed
Apple should run a country
@@thisaintart I would move instantly
@@thisaintart What a dystopian future that would be...
Those “losses” can turn into profits if they stop over-paying the executives at the top. But no. they want that to come out of consumer’s pocket too. Apple did right by its customers.
By giving an institution a raw deal that nearly guaranteed a breakup years down the line, and letting people get into some pretty dangerous situations... and diminishing the rewards you get for using the card and not going through Apple Pay... But yea that's a good thing for customers, apparently. A metal card that you are incentivized against using THAT'S AWESOME!! (I hope the sarcasm was obvious enough but over text you never know)
and no sign up bonus... Even no frills cards give like $200 bonus for spending $500 within 90 days of that line of credit being opened.
Those losses are from the Apple card alone. It is not a sustainable business in the first place. This isn't about paying executives because the project alone cost them near $3b in losses. Without the project, the company would literally save nearly $3b. You can't simply turn a bad venture into a profit by paying the executives less.
I really wonder if they're accounting that $667M as LOST money or if it's just potential money that they could've gouged from people, but couldn't, so they consider it as "lost money".
No - those are losses. Goldman's attempt to get into consumer banking has been a disaster.
Basically from this video Apple wanted Goldman Sachs to be more customer friendly. The only thing I can see if Apple change the statement dates to help with customer service but I like anything else lol
I wonder what’s gonna happen to the hysa that’s provided to Apple Card holders?
Honestly glad I didn't get approved for them. My score is 750+ and I didn't get approved for them, but one of my friends who are kind-of struggling, have a score of ~530 and they got a $5,000 limit. Thats almost predatory!
lmao seriously? I'm in the upper-mid 700s and was approved, but they only gave me a $3,600 credit line. What did this guy do to get 5k lol
Why get a credit card in the first place lol also we all know most people don't have the money to pay back that predatory shit if we are also considering interest payments 😊
@@The92Waffles Because credit-lines are determined by using credit score and debt-to-income ratio. Sounds like you have other credits cards or loans.
@@The92Wafflesyeah I’m in the mid 700s and have a $3750 line. I too want to know how they got $5,000 in a line of credit…
Great graphic, great content👍
$3 billion in loses for Sachs? Someone’s getting fired
Curious how this will change the Apple Card.
OMG this is a great video. thank you
Is the video wrongly cropped or something? I feel like it’s been cropped.
The real question is should I apply for it just to get the credit limit & hope the next bank (if they can convince one) will keep some of the benefits? Any idea what kind of limits they offer? I’m looking for at least $10k to make it worth it
Would this affect the savings account from Apple through Goldman Sachs?
I’m curious to how good the new card will be, at the very least I want it to come to Europe… I’ve never had the chance to try it…
I like this new video style with the colourful background. The old, blank white background got somewhat monotonous.
If they separate what's it gonna mean for Apple Card users?
Goldman just don't know what they are doing with consumer credit
I actually didn't know this and this sounds very good.
In India Apple is rumoured to have partnered with HDFC Bank. Let's see how well it goes out.
everyone? i was denied every time lmao
Interesting video, you should do a video on their SOS feature. Honestly with Qualcomm parting ways with Iridium, Apple could be the first company in the west to introduce a mainstream satellite communication capable phone. I think thats the way Apple is going to head instead of foldables. Huawei has one but it only works in China off of their satellites.
Have always enjoyed my Apple Card on my phone. I don't use it much as its not my prime card for using. I just pay it off every month to avoid interest which Apple does a great job of notifying you when payment is due and avoiding interest. Never had any issue with using it seemlesly for the very few transactions i ever use it for.
Good video and really clear to the point, thank you. Now it make sense. I love Apple Card 🥰🤩
"everyone who applies gets accepted" yeah thats bullshit im close to an 800 and they rejected my no debt having ass
They reject u because you are going to pay dues on time. They will give it to irresponsible people with low credit score so they can milk the interest. This is business
@@yashmetha1232 idk why this person was rejected. But I have a 100% history of repaying my credit bill in full for my main card; never been late. There must be other factors at play which decides this
@@yashmetha1232The “everyone is accepted” period was when Card first launched 5 years ago. It’s not as easy to get these days.
So it was untenable. Makes sense.
So can you do a video explaining why the iPad cellular doesn’t have a phone app?
I hate that the Apple Card will probably never come to Canada. The oligopoly in the banking space up here would simply never allow a credit card that consumer friendly
First time loving Apple genuinely for this human focused move.
Appreciated
The best explanation on this matter
partner with an investment bank which has no experience in retail banking they said, it’ll be fine they said
Rumor is chase bank is going to take over
How do you make these videos?
I believe he makes this in Keynote then screen record it
I guess the first requirement was a bit too much. People with low credit score should not be given a credit card
It should be law that all credit cards have to operate like this
To be fair, you can't expect any company to endure billions of dollars in losses and just continue onwards.
As someone who knows people who work at Apple retail, not every customer was approved for the credit card LOL. But what was nice is that if the customer was denied, Apple/Goldman Sachs provided the customer with reasons why they were denied and how they can improve their outcomes next time
Of course every customer wasn’t approved. They didn’t mean that literally. And all companies send applicants who weren’t approved letters stating why. That’s the law.
Oh no!
Don't live in the US, so no Apple Card here, but the features sound good. I'd be willing to pay a monthly subscription for it.
Got an apple card ad before this ☠️
And the Bank didn't understand the terms in the 1st place? Ya something smells.
Honestly I hope Apple would just do it themselves instead. They could create chequing and savings accounts as well then branch out into other banking product. It’d be easier for them to expand the card outside of the US and keep users in their ecosystem.
Why did they agree in the first place?
Apple being unreasonable and greedy, but Apple's actually HELPING you this time
it's like when the school bully sides with you on something
Then why did they just boost my interest rate on the savings account? If this is actually coming to an end, then increasing its value beforehand doesn’t compute.
Sorry, I'm not from US - can you provide me info of that cards? - was the card free, even if you lost your first, and wanted to have another one - like once a month?
So in other words Apple wanted clear transparency excellent customer support and the bank was upset there was no way to hide anything from the customer.
Oh no, something good for the people!
why is nobody talking about what would happen with the high yield savings acct through them? will it have to be transferred? should people pull money out now and find another bank? everyone's only focusing on the card.
Plenty of options for a HYS account. I have had Amex HYS for years and currently the rate is about 4.35. Never had issues.
I’m so happy, so so happy about this that’s what Robert Kiyosaki says about banking, it looks like Apple actually goes in favor of client, and I understand the way economy works of course is in August will be around the money in profit but bank are beyond the line about fees, charges etc
So my question is if Goldman sachs and the relationship with Apple break up, how does the purchasing process through?
Wow first time as a consumer I fell in love with apple
I love the Apple card precisely for the points mentioned in the video
Probably the best for both parties - not lucrative for Goldman and Apple was always the "winner" in this partnership. Will be interesting who will be the new partner!
Did a video on this topic just now, feel free to check it out if you're keen!
I really admire Tim Cook, he really does make me smile
Apple Card has been my best experience with credit
“Everyone who applies must be approved” is SO wrong 😂 I got a 790 credit score and I got denied! Instead, I got approved for the Amex Gold.. So odd..
Banks are harsh with charges, I remember I got charged just to see all my statements, if I used the banks app it's free. If I withdraw inside the bank, I'm also charged, on the ATM, it's free. IT makes life manageable tbh.
0:29 I was applied countless times until I got a high enough salary
Apple really can't be in a partnership
Microsoft - over
Google - over
Goldman Sachs - over
It makes me wonder will this mean that the Apple card might come and get it too like maybe Apple partner with Neo financial Canada?
“Everyone must be approved” Then explain why I was denied 3 times. 😒
Now I’m worried 😅. The Apple Card has been my primary card basically since it came out, BECAUSE of all those features. I hope they don’t have to end it.
Goldman Sachs did not approve a lot of people who applied.
No one said they did. At the end of the day, it’s still a credit card.
Goldman was desperate to rebuild their brand so they went with it. Now that they’re in a better position, it’s not worth it at all
GS knew what they were getting into. They signed the contract.
Derp.
I applied for apple card and got rejected lol. Granted I was a student with no income stream at the time
Then why did you apply?
Apple wanted efficiency and value for customers is what it sounds like. Im not a sheeple who thinks Apple is a super integral company, but they surely weren’t the bad guys here
Cash back on a daily basis is already done by paypal.
I have two capital one credit cards and I used them a lot Apple Card I just barely use
“everyone applies must be approved" is a big BS
Ok, so the same day statement is actually insane and what the fuck is a late fee?
I thought they said Apple Card was not from a bank.
God forbid we did away with Usery, that sin!
Apple: Goldman Sucks
Goldman: Apple Scarred
We are capping all pay and bonuses to $100,000 per year. Any employees needing more can apply for additional jobs. No million dollar compensation packages or salaries!! Thank you -Sincerely Shah R.Adam P. Qajar Pahlavi'' 👑 #Goldmansachs #Apple #Blackrock #Iran #nhk #bakertilly #bakertill
I mean no business would work in these situations where there is no profit at all, i know banks are greedy but 😂