Apple and Goldman Sachs Planned to Launch iPhone Stock Trading Feature Last Year

[MacRumors]

Apple and Goldman Sachs planned to launch a built-in stock trading feature for the iPhone last year, CNBC reports.

According to three individuals familiar with the matter talking to CNBC, the feature would have served as a rival to trading apps like Robinhood, allowing users to buy and sell stocks directly from their iPhone in a convenient way. One ability apparently pitched by executives was the ability to invest in Apple shares using spare cash. The feature would have bolstered the collaboration between Apple and Goldman Sachs, which now includes Apple Card, Apple Pay Later, and Daily Cash Savings.

Work on the project reportedly began in 2020, when interest rates were low and there was record interest in trading shares. Apple developed the feature and planned to roll it out at some point in 2022. When markets worsened last year, Apple and Goldman Sachs shelved the project due to fears over backlash if users lost money in the stock market, and refocused attention on a high-interest savings account for Apple Card users.

The infrastructure for the investing feature is apparently mostly built and ready to launch if Apple eventually decides to proceed with it, but there are no immediate signs that it has plans to do so.

Article Link: Apple and Goldman Sachs Planned to Launch iPhone Stock Trading Feature Last Year

 

[JapanApple]

Interesting indeed. Trusting Goldman Sachs I am not sure about this.

 

[vertsix]

They can probably earn a lot of money from this actually.

 

[haruhiko]

They will surely start this service when the stock market hits the top😆

 

[CarAnalogy]

What is "spare cash"? Sounds like a clever move from Apple.

"Just let us hold any money you're not using. Not like a bank though."

 

[MrRom92]

I actually like the idea of this, a lot. There’s so much that can be done to lower the barrier to entry and simplify things so the average person can participate in the market as well. Yes, I know there are other apps for this, but I’m sure Apple would come up with something that only they could do.

 

[sack_peak]

What is "spare cash"? Sounds like a clever move from Apple.

"Just let us hold any money you're not using. Not like a bank though."

That's the business practice of any multi industry conglomerate outside the US.

I am surprised this isn't being practiced inside the US.

It may even help boost the market cap of Apple Inc.

 

[jeffmetanna]

This is very interesting indeed. It allows their customers to become owners (and be invested in their business) and the advocates for their business. Not to mention the boost in their stock price with all the new retail investors joining in.

 

[pbridge354]

Probably a good idea. Associating your brand with the volatility of equities trading is a recipe for disaster.

 

[CarAnalogy]

That's the business practice of any multi industry conglomerate outside the US.

I am surprised this isn't being practiced inside the US.

It may even help boost the market cap of Apple Inc.

I guess my sarcastic point is I don’t quite see the distinction between this and just buying Apple stock. Maybe that it would be a savings account that would automatically invest in partial stocks no matter how little money is in it, but I believe most stock trading apps already let you do that.

Can you elaborate a little on what you mean?

 

[vegetassj4]

Hey Siri: Sell 1000 shares of AAPL at $195
Siri: Sold 1000 shares AAPL for $195

todamoon 🚀🚀🚀🚀💎🙌💎🙌💎🙌💎🙌 🦍🦾🤲

 

[sack_peak]

I guess my sarcastic point is I don’t quite see the distinction between this and just buying Apple stock.

Can you elaborate a little on what you mean?

Outside of the US companies as large as Apple expand to other non-traditional markets they dominate.

Like Sony...we know them for their PlayStation, TVs, Walkman, digital cameras and even Android smartphones.

They also have Sony Financial Group and Sony Car.

Samsung does similarly... they have their TV, Android phones, tablets, air-con, refrigerator but have you gone to Samsung Medical Center?

Apple getting into markets they never participated in and leverage their tech to disrupt the players is a great way to grow the company without taking the attention of the antitrust regulators.

Apple has to look for other ways to make money as the loss of the Lightning cable and them having to provide replaceable batteries by 2027 will hurt the bottom line.

 

[Ian619]

If I had to guess (or make a suggestion), I think it would be cool if it was like the "round up" option with Acorns. When you make a transaction with a linked credit/debit card, they round it up to the nearest dollar and then that gets invested into your account. Then there are 1x, 3x, and 10x multipliers. So say the transaction was $10.50, either $0.50, $1.50 or $5.00 can get invested into your account.

I think it would be great if you could opt in to have that round up option, plus any AppleCard rewards, be automatically invested in fractional shares of Apple stock.

 

[cocky jeremy]

I'd be down for that. Instead of having Apple Cash on stuff I buy, just give me Apple stock.

 

[sack_peak]

I'd be down for that. Instead of having Apple Cash on stuff I buy, just give me Apple stock.

Imagine if all the consumer goods we've all bought only fit into "needs" while the money that went to wants were instead used to buy growth or dividend stocks during each crash.

Who wouldn't want $400k of annual dividends for the past 3 decades and counting?

 

[k1121j]

The HYS was good at launch now its lagging behind as others (AMEX. Chase, Discover) are increasing beyond what Apple offers i have had 2-3 increases on others in the last three months while the Apple HYS hasn't moved a bit.

 

[CausticSoda]

They will surely start this service when the stock market hits the top😆

Why? So all the people who jump in at the start immediately lose money?

 

[MRrainer]

Why? So all the people who jump in at the start immediately lose money?

It was a sarcastic remark, if only missing the appropriate tag....

 

[Mr. Dee]

I would start using it if their execution is immediate then purchasing shares. I was gonna purchase some ARM Holdings stock, but I did't have any money in my Robinhood to buy it and have to wait like 6 business days. Maybe it's a good thing, since ARM is down.

 

[CarAnalogy]

Outside of the US companies as large as Apple expand to other non-traditional markets they dominate.

Like Sony...we know them for their PlayStation, TVs, Walkman, digital cameras and even Android smartphones.

They also have Sony Financial Group and Sony Car.

Samsung does similarly... they have their TV, Android phones, tablets, air-con, refrigerator but have you gone to Samsung Medical Center?

Apple getting into markets they never participated in and leverage their tech to disrupt the players is a great way to grow the company without taking the attention of the antitrust regulators.

Apple has to look for other ways to make money as the loss of the Lightning cable and them having to provide replaceable batteries by 2027 will hurt the bottom line.

Ah I see. I don’t think I would like to see Apple expand their markets, they have enough trouble concentrating on their current ones. Being such a huge platform (a Gatekeeper, as the EU would say) is a pretty big task on its own.

However I do get what you’re saying about financial services. I know many companies outside the US fund their “main” operations by essentially being their own bank and insurance company, which also make a lot of money on their own. With so much cash I too am surprised Apple hasn’t done this now that I think about it.

 

[ksgant]

What is "spare cash"? Sounds like a clever move from Apple.

"Just let us hold any money you're not using. Not like a bank though."

Well, they are kind of: with the new savings account earning decent interest rates (for a savings account that is.)

 

[sack_peak]

Ah I see. I don’t think I would like to see Apple expand their markets, they have enough trouble concentrating on their current ones. Being such a huge platform (a Gatekeeper, as the EU would say) is a pretty big task on its own.

However I do get what you’re saying about financial services. I know many companies outside the US fund their “main” operations by essentially being their own bank and insurance company, which also make a lot of money on their own. With so much cash I too am surprised Apple hasn’t done this now that I think about it.

Apple has no choice but to enter new markets once they hit their sweet spot or they be called monopolies.

Ideal saturation for Apple would be the top 30% of any market. They do not need to cater to the top 80% of any market.

Let the bottom 70% silently aspire for an Apple while they slight it.

 

[lkrupp]

So much for the rumor that Goldman Sachs is looking for a way out of its agreement with Apple.

 

[lkrupp]

Probably a good idea. Associating your brand with the volatility of equities trading is a recipe for disaster.

I've been retired for 11 years now and my retirement funds are doing quite well with my fiduciary financial advisor and major investment house, much better than if I'd hidden them under my mattress or locked them up into CDs. People who fancy themselves investment experts are usually the ones who get nailed by the "volatility of equities trading".

 

[ArtOfWarfare]

One ability apparently pitched by executives was the ability to invest in Apple shares using spare cash.

It’s not clear to me from this article…

Would this allow users to invest in shares of any publicly traded stock, or only in Apple?

If they treated shares of their own company special in any way, it seems like this would cause huge regulatory issues with stock market manipulation.

Also, there’s already several services out there that make trading stocks incredibly easy. How would Apple be any better than Robinhood or the others? I can see Apple stealing marketshare, but not by building a better app, but just because they would have it preinstalled on the phone and/or integrated in ways that they don’t permit competitors to be.