Apple is quietly fighting over a headline The Wall Street Journal Which claims the tech giant has “pulled the plug” on its partnership with Goldman Sachs that covers the Apple Card credit card and savings account. Instead, Apple says the two companies remain focused on providing an “amazing experience” to customers, in a statement provided to TechCrunch. However, the newspaper points out that this is not the case – citing unnamed sources, it claims that the tech giant has sent a proposal to Goldman to exit their partnership within 12 to 15 months.
No such exit has been officially announced at this time, but there have been multiple reports detailing how the partnership has deteriorated over the years, including a July 2023 article from the information.
This report noted the issues Goldman faces with Apple Card, such as how it misses traditional forms of credit card revenue, such as annual fees, late fees, and foreign transaction fees. Instead, it takes fees from loans issued to cardholders who finance their Apple products in monthly installments. The article also pointed out some of the bad PR Apple Card received after a viral tweet suggested that some women with good credit were getting worse terms than their husbands. While regulators found no wrongdoing, the incident left a stain on Apple’s reputation.
Later, as Goldman shifted away from its consumer strategy, The The Wall Street Journal reported That the bank began buying out its partnership with Apple for American Express. JPMorgan Chase has also been named as another potential partner. Today, the Wall Street Journal reports other problems as well, such as Apple helping to pay the bills of all cardholders at the beginning of the month, causing customer service issues, and pushing it to get most applicants approved.
Although Apple did not specifically say the WSJ was completely wrong, it did issue a statement that leaves little doubt as to the status of the deal:
“Apple and Goldman Sachs are focused on providing an amazing experience for our customers to help them live healthier financial lives,” the company said in a statement. “The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and provide them with the best tools and services,” Apple said.
The statement can be interpreted in multiple ways. In one reading, Apple says the deal still stands and nothing has changed until then apple announces she has. On another reading, Apple simply wants to sow doubt about any negotiations that may be underway so as not to cause its existing customers to worry that their Apple MasterCards will suddenly turn into Amex cards, for example.
However, it’s worth noting that Apple won’t officially announce the WSJ headline, details in its report, or speculation about new partnerships beyond the provided statement. This also leaves room for doubt, as Apple is not being transparent about the specific points the WSJ raises.
Chatter about the potential end of the Apple-Goldman deal has continued to grow in recent months, despite the fact that Goldman announced a year ago that the deal… It was extended until 2029. While this does not mean that there are not ways for companies to exit the agreement, it does mean that there are contractual obligations that would make doing so difficult for either party. As The Information also reported, Goldman simply cannot offload the business Without Apple’s approval. Additionally, the report noted that Apple also has a deal to operate Apple Card through the Mastercard network until at least 2026. While Apple could partner with another bank, the report pegged the time frame for the Goldman deal to unfold at around 18 months — which is in line with new Wall Street Journal estimates. When there is smoke…