Apple, the tech giant renowned for its innovative products, has reportedly dropped its ambitious venture of introducing built-in stock trading on iPhones. This comes in collaboration with financial heavyweight Goldman Sachs, the partnership aimed to bring forth an application akin to Robinhood. However, as per insider sources quoted by CNBC, this revolutionary idea has been shelved.
Initiation and Halt: A Timeline
The inception of this project traces back to 2020, a time when the financial market witnessed plummeting interest rates and an unprecedented spike in share trading activities. The viral wave of meme stocks significantly fueled this trading frenzy. Apple and Goldman Sachs, identifying the potential, set 2022 as the provisional date to introduce their trading application. Yet, the dynamic nature of the market changed the equation. As market conditions deteriorated in the latter part of the year, apprehensions arose. The core of their concern lay in the possibility of a backlash if users incurred substantial losses through their trading application.
Transitioning from this ambitious project, the focus was swiftly shifted towards the Apple Savings scheme. Contrasting with conventional savings accounts, Apple Savings promised higher yield rates for its users.
Interestingly, people in the loop have hinted that the groundwork for the trading application is almost complete. This raises hopes that if Apple ever decides to revisit this plan, the app might see the light of the day. However, as of now, there’s no inkling of such an intention.
Behind the Scenes: A Possible Apple-Goldman Strain?
The grapevine also suggests a potential strain between Apple and Goldman Sachs as a possible reason behind this setback. Goldman Sachs, which played a pivotal role in the 2019 launch of the Apple Card, reportedly faced losses managing the same. With an approximate spend of $350 for each new customer, it wasn’t a financially viable strategy in the long run. Consequently, in 2022, the financial institution scaled down its vision of converting its consumer savings entity, Marcus, into a full-scale digital bank.
Goldman Sachs’ Platform Solutions executives, earlier in January 2023, adjusted their financial goals, projecting the consumer division to achieve a breakeven point by 2025. The initial target for this was the end of 2022.
Implications for Trading Apps On Apple
For popular stock trading platforms like Robin Hood and Cash App, this development might be a sigh of relief. These apps, heavily patronized by iPhone users, specialize in offering low-dollar investments in fractional shares. The emergence of an Apple-branded trading solution could have posed a significant challenge to their market dominance.
Despite repeated attempts, Apple and Goldman Sachs chose to stay mum when CNBC sought their comments on this development.
What About Crypto Trading?
If Apple chooses to revive its shelved plans of integrating stock trading directly into iPhones, it could potentially pave the way for an even more ambitious integration: cryptocurrency trading. The crypto market has witnessed exponential growth and is fast becoming a mainstream financial instrument. Apple, always at the forefront of innovation, could leverage its vast ecosystem to provide a seamless and secure crypto trading experience directly from their devices. Such an integration would not only bolster Apple’s position as a tech leader but also provide its user base with a trusted platform to explore the volatile world of cryptocurrencies.
Integrating crypto trading would be a natural progression after stock trading, given the similarities in trading mechanisms and the increasing interdependence of these markets. Moreover, with Apple’s emphasis on privacy and security, users could benefit from a platform that offers robust protection against the myriad of security threats prevalent in the crypto world. The combination of Apple’s technological prowess with the allure of cryptocurrency could reshape the dynamics of mobile financial transactions and further solidify Apple’s position as an indispensable player in the evolving digital landscape.