Apple is coming out with a new credit card in 2019. It will have some amount of cash back and likely advantages for buying Apple products.
How’s it going everybody this is vita bush today i’m going to talk about apple’s new credit card that they’re gonna introduce later this year now i saw a wall street journal that apple is working with goldman sachs in order to introduce a new credit card that will likely have something like a 2% cash back and something a little bit more if you buy apple products i
Assume they probably will introduce something like a three or four percent cashback or maybe cash only that you can spend in the apple store they’ll probably be other typical finance tricks along with credit cards like no inches for the first 12 months or something whenever you buy apple products i need some paper hold on here it is i could care less what kind of
Benefits it has most people and by this i mean the majority of people if they happen to get this credit card they’re gonna lose money over it what i mean by most people is that the majority the majority of people that gets credit cards are eventually gonna get in trouble now i don’t want to be picking on apple or goldman sachs or anything i’m just talking about
This in general for any credit card that’s being introduced it’s really just a moneymaker we already know for the past three or four years already that apple has not really been introducing anything very revolutionary i would say i mean there are products that comes out but it’s not in the same league as you know introducing a brand new category such as the iphone
Such as the ipad so in order to make up for this decline in iphone sales they’ve been slowly increasing the prices of the phone without really increasing all that many more features people are starting to notice this already but apple is trying to make as much money as possible in fact they’re trying to grow their profits but this is all trying to be done without
Introducing a brand new revolutionary product what i and probably a lot of people already see is that they’re trying to make money in any means necessary so they go into the service industry yes they are probably gonna increase their profits but they’re sort of still riding on the coattails of the previous products you can only wring it out so much before it’s
Completely dried out now going into the credit card business now they’re not making their own credit card they just you know go to some bank goldman and go hey we want a credit card and through this process they’re probably gonna take a huge cut they’re gonna negotiate and then go okay you know however much money gets that gets funneled through this credit card
They’re gonna be able to take a certain amount of it and because apple is such a big player just like their negotiation a long time ago with any sort of vendor and initially with the cellular services they probably going to get a very favorable term so that they’re going to get you know bunch of money basically just for saying okay this is the apple credit card so
What’s the result of this if they introduced it let’s say in q2 of this year i feel like they’re likely gonna make i don’t know a half a billion dollars a billion dollars that’s gonna be added right down to their bottom line so they are going to make a lot of money but listening about this where’s this money coming from you it’s it’s coming from you because you’re
Don’t want that going to be signing up for this apple credit card you are gonna be the one that goes hey you know it says you know twelve months free financing for this apple computer because you have the apple credit card and on top of that if you use that credit card you get three or four percent off of that so wow what a great deal you can buy this laptop for
School or whatever and you don’t even have to pay until a year later and then you only have to pay the minimum for a year you know twenty thirty dollars and then by the time it hits okay by the time suddenly twelve months is up you are suddenly hit with a 20% apr and then you still have to make these monthly payments by the time that you’re finished paying off this
Macbook or whatever you’re gonna end up paying twice the amount of the original maybe it’s like a thousand dollars okay by the time you finish paying it off four or five years down the line maybe you paid two thousand dollars instead this is typical this is not special to buying a mac product having a credit card does the same thing you can buy anything you want
You can go buy a big-screen tv you can buy anything expensive and the same thing happens whatever you need it’s just it gets funneled through that credit card instead so instead of you know some consumer they use some random credit card okay whatever brand it’s not apple branded credit card they use you know their own credit card instead of that money going to you
Know different bank now apple is likely going to have their own credit card so in a way they’re taking that slice of profit that would have went to a bunch of other banks distributed whatever way and instead apples gonna pocket that instead and sort of you know split it between that company and goldman sachs make no mistake i believe this credit card and a lot of
Other credit cards okay it’s not a particular on this particular credit card but it is a total transfer of wealth from the middle class to the top 1% who buys a bunch of these apple products is really in the middle class or so the upload’ middle class i can actually afford these apple products and probably people not so middle-class as well because they want to have
This appearance of being affluent so then they buy these products and they dig themselves deeper into debt and they transfer this wealth from their pockets into the company and also the bank now let’s follow where the money goes here if you get this credit card and you go and buy a bunch of apple products the money that apple earns is gonna go into their banks or
Whatnot once the profit goes into the company these days apple isn’t really using it all that much so it just sort of sits idle but it does help their share price go up and who owns the majority of the share prices which is you know the top one percent both companies will take this profit to run the company they’re gonna have money to do acquisitions they’re gonna
Do share buybacks and through these activities acquisition share buybacks and all that who do you think benefits it goes to increase a stock price and the beneficiary of this rising stock price you have to look at who owns the majority of that which is the 1% if you want to be careful of sort of slowing down this transfer of wealth you really have to look at who
The beneficiaries are of the products that you buy not all companies are publicly traded and maybe even the smaller companies maybe the local ones that you participate in the profits does not actually flow out into you know oblivion into the top 1% maybe you find local stores to support so then you buy whatever products they have generally they’re a little bit
More expensive but by the time they make the profit they’re eventually going to buy some very commercial products themselves so this will be a second-order effect eventually some transfer of wealth is going to happen you know is going to leak eventually because it’s very very difficult to not buy these hugely commercial products most consumers that signs up for
Credit cards overall if you look at how much money is being spent how much money is being wasted on interest payments on late fees and stuff overall is actually bad for the consumer now this is not to say that it’s bad for everyone there are i assume 5 to 10% of the population that if you get this credit card you’re actually going to benefit from it because hey
If i get it i tend to be very responsible with credit cards myself but i might be an outlier maybe if i decide to buy a laptop or something i might be able to take advantage of this by getting you know 2 to 5 percent cashback and this would actually benefit me maybe if i sign up for the credit card i’ll get i don’t know $100 cash back or something the fact that i
Know i probably will benefit from this it’s very different than the general population because if you look at on average everyone signing up for this credit card a lot of people are going to use this credit card in the wrong way pay a lot of interest payments maybe if there’s some advantageous financing deal there you’re going to miss it at the very end and maybe
You know it’s like this same story with any credit card a lot of the consumers don’t know how to use a credit card properly and therefore it’s actually better if you don’t get it at all thanks for watching this video i hope you guys enjoyed this discussion don’t forget to give me a like on this video let me know what you think the apple credit card will look like
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Transcribed from video
The Apple Credit Card By BeatTheBush
