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Is the Apple Card Apple’s move to sell more iPhones?



Apple’s first credit card, the AppleCard, was recently made available to all U.S. users. Although apple card users have made some very positive feedback in terms of performance, the rumors suggest that Apple’s main goal is more than just a credit card.

The Apple Card raises the bar for how a credit card performs, but there’s more to it than that. Because the Apple Card comes out as Apple’s secret weapon to sell more iPhones.

Apple has released a new iPhone every year since 2007. However, after a decade on the market, as the innovations around the smartphone mature, so do sales and start to decline. To illustrate with an example: Between 2015 and 2017, iPhone sales accounted for 70 percent of Apple revenue. According to data released on July 30, recent iPhone sales account for only 48 percent of Apple revenue. For the past three years, Apple’s iPhone sales have been lower each year than the previous year.

In fact, smartphone sales are falling all over the world, but the iPhone is still a big part of Apple’s business. It currently accounts for about half of the company’s total revenue. That’s why Apple needs new ways to lure people to iPhones. For years, Apple looked at the App Store and the iTunes Store as a source of revenue, as well as a way to sell iPhones. Even the company now sells subscriptions for services such as the music service Apple Music and the news service Apple News Plus. Starting this fall, the tech giant will also have Apple Arcade and Apple TV+, two new premium services for video games and original programming.



The Apple Card, now available to all of Apple’s U.S. customers, may seem like an independent product, but Apple’s credit card is essentially a system designed to lock the user into the iPhone ecosystem. Because the card consists entirely of a system that relies on the iPhone. Apple Card holders can control spending with the iPhone, and apple card can’t even be billed when it comes to loss. Apple Card’s rewards are also linked to the iPhone. Your Daily Cash, spent with an Apple Card, goes directly to the virtual Apple Cash card, which is also available in the iPhone’s Wallet app. Also, when a card is used to buy any Apple product, more Daily Cash is earned, an extra incentive to continue to get used to Apple’s ecosystem.

In short, Apple is pushing people to use iPhones because of Apple Card’s iPhone dependence and continues to keep existing iPhone users in their world.

Apple is said to be quietly working on more exciting projects that could be as effective as the iPhone, such as its autonomous car project and smart glasses expected to come next year. However, the company must sell more iPhones in the meantime to avoid lowering revenues. Like most Apple products, the Apple Card experience will improve significantly with the third or fourth iteration. However, it would be wrong to think that this is just a credit card, because at the core of the Apple Card, it is an incentive to sell iPhones.



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