Goldman Sachs’ Apple Partnership Faces Uncertainty
Goldman Sachs’ lucrative credit-card partnership with tech giant Apple may not last until its contract expires in 2030, according to CEO David Solomon. Speaking during an earnings call, Solomon hinted that the partnership’s future is uncertain, citing a possibility that it may not continue until the end of the decade.
A Challenging Year for Goldman’s Platform Solutions Unit
The Apple card has been a drag on Goldman’s return on equity, subtracting 75 to 100 basis points last year. However, Solomon expressed optimism that this trend will reverse in 2025 and 2026. The platform solutions unit, which houses the Apple card business, reported a staggering $859-million annual net loss in 2024.
JPMorgan Chase Emerges as a Potential Suitor
Rumors have been circulating that JPMorgan Chase is in talks with Apple to replace Goldman Sachs as its credit-card partner. According to sources familiar with the matter, the discussions have been ongoing since September. If successful, this move could mark a significant shift in the credit-card landscape.
A Shift in Strategy for Goldman Sachs?
Solomon’s comments have sparked speculation about Goldman Sachs’ strategy moving forward. Will the investment bank focus on more profitable ventures, or will it work to revamp its platform solutions unit? One thing is certain – the next few years will be crucial in determining the fate of Goldman’s partnership with Apple.
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