Here's how the new Apple Card could put pressure on Verizon and AT & T



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On June 3, 2019, Apple CEO Tim Cook speaks at Apple's Global Developer Conference in San Jose, California.

Bricklayer trinca | Reuters

Apple's new credit card with Goldman Sachs could be a breaking force in more than the banking sector, according to two analysts at MoffettNathanson.

The installation of the tech giant in the banking sector could allow customers to finance new iPhone models, breaking a vital link between customers and mobile operators such as Verizon and AT & T, wrote Craig Moffett and Lisa Ellis to customers.

Mobile operators often sell expensive new phones to their customers according to payment plans that are phased in as part of their monthly service bill. This keeps customers locked in the carrier until the phone is refunded.

Boosting an idea from industry blogger Jim Patterson, analysts said the Apple Card and the new SIM card technology could allow customers to switch more easily between wireless services.

"Any iPhone purchased with Apple Card would naturally involve monthly payments to Apple rather than to Verizon or AT & T. This would make the phone a lot more" portable "between operators Coupled with the upcoming arrival of eSIM technology in Apple phones, Apple cardholders could then be virtually frictionless, "said analysts.

Analysts have come up with the idea that Apple, with a loyal army of customers that can easily switch providers, could buy a wireless service from wholesale telecom companies for their customers.

"At a minimum, having millions, if not tens of millions, of iPhone billing relationships would give Apple a lot of room for maneuver," analysts said.

Apple unveiled the Apple card earlier this year, linking the credit card to its Apple Pay system to expand its service business. The map became available to everyone in the United States earlier this week.

Apple's shares rose more than 1% on Wednesday, in line with the rise in major stock indexes. The company's shares have risen by about 35% so far this year.

WATCH: Recisher & # 39; s Swisher on the new Apple Card

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