Goldman Sachs CEO David Solomon revealed on Wednesday that the company’s credit card partnership with Apple, currently slated to run until 2030, might terminate earlier than anticipated. This announcement was made during Goldman Sachs’ earnings call.
Solomon stated, “We have a contract with Apple to run that partnership until 2030, although there’s some possibility that it won’t continue until that time frame.” He acknowledged the Apple Card’s negative impact on Goldman Sachs’ return on equity, estimating a reduction of 75 to 100 basis points last year. However, Solomon projected improvement in this metric by 2025 and 2026. The Apple Card operations reside within Goldman’s platform solutions unit, a division that reported a substantial $859 million net loss for 2024.
In September, Reuters reported that JPMorgan Chase was engaging in discussions with Apple to potentially replace Goldman Sachs as the issuer of the Apple Card. This information was based on insights from a source familiar with the ongoing negotiations. This development adds further context to Solomon’s remarks, suggesting a potential shift in the landscape of Apple’s financial partnerships. The future of the Apple Card and its issuing partner remains uncertain, pending further announcements from either Apple or the involved financial institutions.
While the specific reasons for the potential early termination remain undisclosed, the financial performance of the Apple Card within Goldman Sachs’ portfolio and the emergence of JPMorgan Chase as a potential successor point towards a complex strategic recalibration for all parties involved.
