Published , by Sam Chandler
Published , by Sam Chandler
Personal finance is a tricky thing, even if you’re a massive company like Apple and Goldman Sachs. The two have reportedly ended their partnership, which Apple had relied on to launch its Apple Card, a credit card that took advantage of its Apple Pay systems and more.
On November 28, 2023, the Wall Street Journal reported that Apple is ending its partnership with Goldman Sachs. According to the Wall Street Journal, the partnership with Apple was Goldman Sachs' attempt to enter the consumer market, “The partnership was a big part of its failed bid to diversify beyond businesses serving big corporate and investor clients and the ultrarich, and its demise is the final big step back from the failed experiment.”
This partnership originally started back in 2019 when the Apple Card was first entering the scene and has since hit a number of hurdles. Despite offering no late fees and Daily Cash instead of points, Apple Card was under investigation for alleged discrimination against women and saw the Goldman Sachs’ loss rate on credit loans reaching 2.93 percent Q2 2022.
It wasn’t all doom and gloom during the partnership though. Apple was able to add a Savings account feature to the product thanks to Goldman Sachs, which offered a 4.15 percent rate. The Wall Street Journal notes that Goldman Sachs has been looking to hand the program over to other companies including American Express and Synchrony Financial.
Apple recently posted its FY 2023 finance reports which highlighted how the company had performed over the previous year. The tech giant bought back $77.55 billion of its common stock while its iPhone sales grew almost 3 percent in Q4 2023 compared to Q4 2022. Be sure to check out our AAPL page for more on Apple’s finances.