The partnership between Apple and Goldman Sachs regarding the Apple Card has faced challenges, and reports suggest it might be coming to an unexpected end. Goldman Sachs’ CEO has recently addressed this potential shift during an earnings call.
Apple Card-Goldman Sachs partnership may not last through its full contract
Today, Reuters reported on recent remarks made by Goldman Sachs CEO David Solomon about the Apple Card’s potential change in financial support.
Here’s the summary from Reuters:
“We have a contract with Apple to maintain that partnership until 2030, but there’s a chance that it may not continue through that period,” Solomon informed analysts during the earnings call.
He noted that the Apple Card negatively impacted Goldman’s return on equity by 75 to 100 basis points over the previous year, but he expects “that will improve in 2025 and 2026.”
A report from the Wall Street Journal last fall indicated that substantial losses within Goldman Sachs’ consumer sector—including the Apple Card—were significant factors behind the speculated partnership split.
Apple has mostly provided statements that reinforce its commitment to delivering an excellent experience for Apple Card users, without clarifying any potential shifts regarding Goldman Sachs.
JPMorgan Chase has emerged as a leading candidate to potentially replace Goldman Sachs in this partnership, but no official confirmations have been made yet.
Regardless of the outcome, it appears that some changes are on the horizon for the Apple Card. Ideally, Apple will ensure that customers do not experience any adverse effects from this possible financial transition.
Are you worried about the potential separation between Apple and Goldman Sachs? Share your thoughts in the comments.
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