The Apple CEO Tim Cook announced that the tech titan is launching its credit card Apple Card in August during an earnings call discussing the business’s third quarter earnings.
The Cupertino company first announced the new product during its March keynote event. The credit card is built into the Apple Wallet app. As such, users can use their iPhones to manage their cards, seeing where and how they spend their money. It was also touted to offer heightened security services.
Moreover, the Apple Card will give customers daily cashbacks on the percentage of every purchase. This would be two per cent for every external purchase and three per cent for everything bought within the Apple ecosystem.
The card will be available on the phone moments after signing up and would also be received as a physical titanium copy.
At the time of the announcement, Jennifer Bailey, Apple’s vice president of Apple Pay, said, “Apple Card builds on the tremendous success of Apple Pay and delivers new experiences only possible with the power of iPhone. Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.”
Apple’s beat the predictions in the third quarter. Its quarterly revenues jumped to $53.8bn, above its previous estimate of $53.39bn. These results made the company’s shares jump by three per cent in after-hours trading.
The rise comes after revenues had fallen in the first two quarters of 2019. Part of the reason for that was the decline in iPhone sales. And it seems the smartphone sales are still reclining. The third quarter saw iPhone sales make up less than half of the Californian company’s revenue for the first time since 2012. It amounted to $25.99bn comparatively, that figure was $29.47bn a year ago.
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