The relationship between Apple and Goldman Sachs regarding the Apple Card has been tumultuous, and recent reports suggest that it may be coming to an end. Goldman’s CEO has now confirmed that a premature termination of the Apple partnership is a possibility, as discussed in a recent earnings call.
Apple Card-Goldman Sachs partnership may not last through current contract
Today, Reuters reported new insights from Goldman Sachs CEO David Solomon regarding the potential shift in financial support for the Apple Card.
According to the Reuters report:
“We have a contract with Apple to maintain that partnership until 2030, but there is a possibility that it might not extend to that time frame,” Solomon stated to analysts during an earnings call.
The Apple Card impacted Goldman’s return on equity by 75 to 100 basis points last year, although Solomon indicated that “this situation will improve in 2025 and 2026.”
Last autumn, a report from the Wall Street Journal indicated that Goldman Sachs was facing substantial losses in its consumer business—encompassing the Apple Card—which contributed to speculation about the rumored separation.
In contrast, Apple has only issued statements reiterating its commitment to providing a great experience for Apple Card users, without directly addressing any potential changes with Goldman.
JPMorgan Chase is said to be a leading candidate to potentially take over the business from Goldman as part of a new partnership with Apple, but no official announcements have been made yet regarding this transition.
Regardless of the details, it appears that we can expect some modifications to the Apple Card in the forthcoming years. Hopefully, Apple will ensure that customers do not experience any adverse effects during this possible financial shift.
Do you have concerns about the potential split between Apple and Goldman Sachs? Share your thoughts in the comments.
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