By CCN Markets: The first thing to understand about the Apple Card is that it is not exactly a card. n brings an aggressive white, titanium-produced credit card – which has let go of the 16-digit numbers found on traditional credit / debit cards – ahead.
– ChampagneFelipe 🥂 (@champagnefelipe) August 12, 2019
Where's the reward point?
But Apple Card is of no importance since Apple discourages users from using the actual card. Instead, the company introduces several layers of hardware requirements, in the form of expensive iPhones and digital watches, and [literally] pays users to use them. The move makes the Apple Card seem like a by-product in its own way, not an idiosyncratic phenomenon it has set out to become.
It's clear how Apple's refund programs work. If an average consumer uses Apple Card directly to pay for goods and services, they will receive a 1 percent refund against 2 percent when using the Apple Pay mobile payment service. At the same time, consumers receive an additional 3 percent refund on purchases of Apple products, including App Store payments, through Apple Pay.
It makes one wonder why Apple had to go through the hassle of inventing an elegant looking card when it was just a backup for sites that do not accept Apple Pay. 1 percent cash back seems like a cruel joke, especially when other credit cards offer better reward points, making the Apple Card a useless addition to one's wallet.
– Julian Velasquez (@princezorldo) August 15, 2019
For example, if a customer regularly buys from Amazon.com or Whole Foods, then they are more likely to use Amazon Prime Rewards Visa Signature cards because it gives 5% cash back on purchases. But by using the Apple Card, the rewards are reduced to just 1 percent. Even using the card to pay at gas stations, restaurants or chemists returns only 2 percent. Bank of America's Cash Rewards card does the same for 3 percent.
Deceiving users to buy iPhones
So the whole point of the Apple Card is limited to just one thing: making an Apple junkie out of an average user. The points with the highest rewards are reserved for consumers with an appetite for Apple products. The company's payment service will be most valuable to those who want to buy the latest iPhones, Macbooks, Apple Watch and even subscriptions to iCloud, Apple Music, etc.
Of course, that's what Apple has always been about: yes The more people it brings into the walled garden, the more they are likely to pay for the products. The Apple card is only available to iPhone users, which means you have to spend at least $ 600 to be eligible to use it. A typical bank would not force a phone down the neck of the consumer to sell their card services.
The strategy closely follows Apple's Q2 2019 earnings report. The company reported a significant drop in sales of iPhones – below $ 26 billion of total revenues of $ 53.89 billion. It was the smartphone's lowest earnings since 2012, indicating that customers were moving toward cheaper and more reliable alternatives in the Android market.
Luca Maestri, Apple's chief financial officer, told the Financial Times that the company is optimistic for the September quarter when several services are launched, which include video streaming, gaming and – not least – credit cards.
“Outside of the iPhone, the company is growing by 17 percent. When you combine services and wearables – categories that hardly existed a few years ago – you combine the two businesses and are already approaching the size of a Fortune 50 company, growing in strong double digits. "
explains how the Apple card is just a ploy to connect users with their iPhones as they continue to manage their wealth. Rest in peace, Reward Points.
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