Retailers Face New Threat From Apple
The Apple Card is not yet in Australia, but we understand it is coming and when it does it could create problems for Apple’s existing retail partners.
This week Apple in the US moved to announce an expansion the options available to users of the Apple card with owners set to be able to buy new iPhones from Apple with no interest over 24 months and no fees.
This could impact carriers such as Telstra Optus and Vodafone as well as retailers such as JB Hi Fi Australia’s #1 retailer of smartphones.
The new offers including discounts off Uber Eats was announced as part of Apple’s earnings call and are expected to go into effect sometime in the near future in Australia.
In addition, customers who use an Apple Card, will automatically get 3 percent cash back on the purchase.
There are similar financing options for iPhones currently available, via carriers and retailers in Australia.
Based on trying to drive all Apple product sales to one of their own stores or direct to the Apple web site, users already get an iPhone Upgrade Program offer consisting of no interest over 24 months.
According to Apple CEO Tim Cook, the Apple Card has been the most successful credit card launch in U.S. history, and that’s not all that surprising. The key to the Apple Card isn’t the card itself — it’s the Wallet app, which makes managing the Apple Card and seeing insights on your spending simple.
According to Apple, the app is built to help people manage their credit and their spending, while discouraging letting the balance build. Lastly, it offers no fees, including international fees.
Apart from the new Apple Card perk, Cook also announced that Apple achieved its highest fourth-quarter revenue ever — $64 billion. While iPhone revenue was down a little compared to last year, it beat expectations — and was offset by income from other areas of Apple’s business, like wearables.
For the first quarter of 2020, Apple expects revenue of a whopping $85.5 to $89.5 billion, which is about on par with last year’s Q1 revenue of $88.3 billion. If it beats last year, it will have achieved its highest Q1 revenue ever.