Old Mar 27, 19, 12:58 pm
Join Date: Mar 2013
Posts: 684
Originally Posted by RedSun View Post
A lot of this is true. But how large is this market segment? Also remember the 18+ year old do not even make their own money yet, but living on parent's money. It has very limited buying power.

What I see is that this card would generate a lot of attention. A lot people would initially jump on the application and get a piece of the excitement. Then it will quickly cool off and die down. Apple is not in the business of Apple Bank. Not yet.

Think about the Apple Cash Pay. It generated a lot of excitement too. But most of the kids now use Venmo. Probably PayPal is more popular then Apple Cash Pay.
1) The market segment is in the millions in the United States alone.
2) This isn’t about getting people who spend $50k plus onto the Apple Card, it’s about generating further adoption of Apple Pay and locking you further into the Apple ecosystem.

My prediction will be there will be more people with Apple Card than people with AMEX Platinum Cards, Chase Sapphire Reserve Cards, or Citi Prestige Cards, combined, after one year. If you consider any of those successful for adoption, then this will be a smashing success. Consumers who get this card now actively think “let me see if I can use Apple Pay”. That makes it a winner in Apple’s book. From Goldman Sach’s perspective, it’s an easy way to dip your toes into the consumer credit market. You don’t think this will be the only card they ever offer, do you? If you eventually decide you need to have a different card than the Apple Card but still utilise Apple Pay, then Apple has won. If you decide not to switch to an android phone because that means you have to get a new credit card on top of it, Apple has won.

Last edited by jags86; Mar 27, 19 at 1:08 pm
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