The Apple Card is the latest product from Apple and unlike the iPhone, it’s something that the company has never tried before. Apple will partner with Goldman Sachs to roll out the MasterCard credit card. Apple is traditionally known for its devices. The company has been making computers since the 70s and you wouldn’t bet on it diversifying into financial services. But this is the hard truth.
In an effort to diversify revenues, Apple thinks the new credit card service could play a role. But it will do more than that. It may just prove to be a promising move that could go a long way in helping the smartphone giant maintain its current iPhone customers. As a matter of fact, some analysts are arguing that there is one simple reason why Apple is launching the Apple card, and it’s all about selling iPhones. Here is why.
First, Apple Card looks like an extension of Apple Pay. Apple Pay lets you connect your cards to your phone. This way, you don’t have to remove your wallet every time you need to pay with a card. However, in case you run into stores that do not accept Apple Pay, you can easily pop out the Apple Card and pay for whatever you want.
There is also another important factor. You will only be able to use Apple Card if you have an iPhone. In essence, even if you really feel that the card has some great benefits, you can’t sign up for it unless you buy an iPhone. It’s not hard to understand why Apple is deciding to take this approach. After all, the credit card market is highly competitive and the company doesn’t want to compete with other established providers. This card is simply an add-on to the company’s long list of products designed to keep consumers locked on the iPhone.
Think of it as an extension of iTunes, iCloud, Apple Music, and iMessage. The goal is to tie as many services as possible to the iPhone so that every time you think of shifting to an Android device, you will think about the many services you are about to lose and simply decide it’s not worth it. Apple knows how hard it is to maintain customers. This is actually an era where switching devices is not a big deal and when you consider that Apple devices are going for as high as $1,000, the company needs to do more to compete with competitors in the market selling devices for as low as $400.
Besides, declining iPhone sales over the years is a clear indication that more people are turned off by the high price tag. Adding extra services to make sure the money is worth it seems like a legit way to go. Apple Card presents a great opportunity no doubt. It’s a luxury item that will suit most loyal iPhone users out there.