Much has been said about the relationship between Goldman Sachs and Apple in their fintech venture before the current decade started, and it is now confirmed that their partnership will end before the decade ends. This earlier timeline was confirmed by Goldman Sachs' CEO, and while it does not necessarily mean that the Apple Card will be shut down, one of America's Big Banks will no longer be a part of it.
Talks of Apple and Goldman Sachs' split have made headlines over the past years because of the significant damages it caused to the financial institutions, which left them bleeding instead of prospering from the famed service.
Goldman Sachs CEO Confirms Earlier Split on Apple Card
A recent earnings call by Goldman Sachs shed light on its muddy relationship with Apple in their Apple Card partnership, with CEO David Solomon claiming that they will not wait for the contract to end. Reuters reported that Solomon shared during the call its collaboration with Apple has a contract that runs until 2030. However, the financial company will opt out of it earlier than expected.
That being said, Solomon did not mention exact timelines regarding its split with Apple, but this may mean that in the coming years, they will make their dissolution official, and it will not reach the end of the decade.
The previous years have been rough on Goldman Sachs as per reports and its earnings call, particularly as they lost a lot on keeping this venture alive with Apple despite the massive success and fame found by the service over the years.
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Apple, Goldman Sachs Ends Partnership: On To New Ones
Goldman Sachs revealed that they saw a drop in their return on equity by 75 to 100 basis points in 2024, and it is only a testament to their winding numbers over the past years, which led to their decision to leave behind Apple. However, the Big Bank expects that 2025 and 2026 will see improvements in Apple Card's performance, but it is not enough for them to continue.
Among the top replacements for Goldman Sachs to fulfill their end on the Apple Card venture is JPMorgan Chase, but there are no confirmations yet on who will replace the bank.
The Apple Card Fiasco: Goldman Wants Out
Almost two years ago, reports of Goldman Sachs losing billions on their partnership with the Cupertino tech giant on their Apple Card venture rocked the fintech industry, and this led many to believe that the credit card is on its last legs. However, the talks regarding their split do not necessarily mean that Apple Card is ending, but Apple also gave Goldman Sachs a way to exit their decade-long contract.
There have been various names surfaced from reports that claimed to be filling in Goldman Sachs' work on the financial aspect of the Apple Card service, but none have yet confirmed if they are Apple's next partner. Two banks are believed to be the frontrunners in helping Apple with their fintech venture, including the first one named American Express and the most recent being JPMorgan Chase.
The rocky relationship between Apple and Goldman Sachs, paired with the massive losses the Big Bank faced over the past years, has already signaled the fallout between the two, and it is only a matter of time before they announce their split. While there are no massive feuds between the pair, Goldman Sachs is already hinting at their earlier exit as Cupertino's partner, coming before the decade ends.
