Goldman Sachs is considering an early exit from its 10-year-old partnership with Apple, citing mounting financial losses and regulatory headaches. The move comes as the firm struggles to maintain profitability, despite strong revenue growth in other areas.
According to CEO David Solomon, the Apple Card has been a financial drag on Goldman’s Platform Solutions unit, resulting in an $859 million net loss in 2024. The partnership also carries significant regulatory risk, with Goldman facing a $90 million fine from the Consumer Financial Protection Bureau last year.
However, Goldman’s core businesses are performing well, with Global Banking & Markets reporting a 33% revenue surge in 2024. Solomon expressed optimism that Platform Solutions will bounce back by 2025 or 2026 as the bank refocuses on its strengths.
The potential exit from the Apple Card partnership could have significant implications for both companies. Apple’s financial products, including the Apple Card and Savings, rely heavily on Goldman’s backend support. Any disruption to this relationship could impact features like Daily Cash rewards and account management.
Despite these risks, investors should remain cautious as Apple is known for its user-first innovation approach. The company has consistently demonstrated its ability to adapt and evolve in response to changing market conditions. As the situation unfolds, it will be important to monitor how both companies navigate this potential partnership shake-up.
Source: https://finance.yahoo.com/news/goldman-sachs-eyes-early-apple-205209859.html