Apple and Goldman Sachs have had a fraught Apple Card relationship, which has widely been reported to be ending soon. Now, Goldman’s CEO has confirmed the possibility of a premature conclusion to the Apple partnership during a recent earnings call.
Apple Card-Goldman Sachs partnership possibly ‘won’t continue’ all the way through current contract
Today, Reuters highlighted new comments from Goldman Sachs CEO David Solomon on Apple Card’s potential shift in financial backer.
“We have a contract with Apple to run that partnership until 2030, although there’s some possibility that it won’t continue until that time frame,” Solomon told analysts on an earnings call.
The Apple card dragged down Goldman’s return on equity by 75 to 100 basis points last year, but “that will improve in 2025 and 2026,” he added.
Last fall, a Wall Street Journal report pointed to significant losses Goldman Sachs was facing in its consumer business—which includes Apple Card—as a key reason for the rumored partnership break.
Top comment by JustNeedItForDev
Apple took advantage of Goldman wanting to get into the consumer side of financing (which they want to exit now). Goldman at the time was willing to give up a lot to get a foot in the door. I doubt the terms for whomever gets it next will be as generous.
Apple, for its part, has only released statements that affirm its ongoing commitment to ‘providing an incredible experience’ for Apple Card customers, without actually saying whether things with Goldman were changing.
JPMorgan Chase is reportedly a prime contender to take over the business from Goldman as part of a new Apple partnership, but as with all of these details, nothing official has been shared yet.
One way or another, it sounds like Apple Card will be receiving some changes in the years ahead. Hopefully Apple can insulate customers from experiencing any negative consequences of a possible financial transition.
Are you concerned about Apple and Goldman possibly parting ways? Why or why not? Let us know in the comments.
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