The Apple Card should be the next iPhone: Why it’s not and how it could be.

While many think that Apple’s success comes from defining new industries with revolutionary ideas, in actuality, what really accounts for Apple’s wild success today is a pattern of redefining preexisting industries with great products. For example, Apple didn’t create the smart phone with the iPhone, that market and product already existed, Apple simply made it way better and defined the product as what it still is today. The same is true with other stand out products like the iPod and the original Mac, both the MP3 player and personal computer respectively were around before before these products were introduced, but both product fields were drastically different afterwards. Recently, Apple had the opportunity to redefine another industry, one with much less clear ties to tech, but astronomically important roles in it. The Apple Card could’ve done what the iPod, iPhone, and Mac did before it: redefine an industry, and in this case that industry was banking, but so far, it hasn’t, so why not. One important detail to recognize about the success stories of the iPod, iPhone, Mac, and iPad redefining their respective industries is that, prior to their release, each industry lacked several key traits that made disruption much more attainable, most notably: a good user experience. With each of these products, Apple brought a good user experience and other missing pieces to their respective product fields,  bringing with them tremendous success and market disruption. Like the other pre-Apple disruption fields, banking is severely lacking a good user experience. Especially in recent years, banks have been hurting their users through actions like decreasing interest for bank accounts and increasing it on loans, on top of all of the hidden fees, fine print, and nauseating contracts that have become synonymous with banking. If any company could revolutionize banking and make it easier and more accessible than ever, Apple could. But why didn’t they with the Apple Card? The answer is simple: they partnered with a bank! Instead of providing credit services by outsourcing them from Goldman Sachs, Apple should have taken a different approach. Apple has proven itself to be a tremendously profitable investment, recently earning the title of the most valuable company in the world after reaching a net worth of one trillion dollars. Apple should have used this to their advantage with the Apple Card, rather than offering banking services through a third party, they should have maintained everything themselves, backing interest with stock price and utilizing the money stored to fund projects. Such a move could make it significantly more easy and secure to invest in the most valuable company in the world, while also revolutionizing the banking system and making it significantly easier to deal with. This move could bring Apple fully into a new industry and simultaneously redefine it, the same way that, with the iPhone, the company entered the smartphone industry and made themselves an invaluable player in it.

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