Apple 1Q24 10-Q Takeaways, Apple Balance Sheet Observations

Today’s update will wrap up Neil’s 1Q24 earnings preview. We will examine Apple’s 1Q24 10-Q filing and the latest balance sheet trends. Here’s what we have covered so far on the Apple earnings front:

• Feb 2nd: Big picture takeaway, Apple’s 1Q24 numbers (vs. my expectations), 2Q24 guidance.

• Feb 5th: Looking through 1Q24 numbers to examine Apple’s ecosystem growth.

• Feb 6th: Analyzing Apple’s earnings call with analysts.

• Today: Examining the 10-Q and balance sheet developments.

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Apple Launches High-Yield Savings Account, Apple’s Great Timing, Apple’s Expanding Fintech Play (Daily Update)

Happy Tuesday. We begin today’s update with an examination of Apple’s new savings account (in partnership with Goldman Sachs). The discussion goes over three things about the account that jumped out at Neil. We then go over how Apple has great timing with this savings account and how the new product fits within Apple’s broader fintech play.

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Apple Launches High-Yield Savings Account

In a press release issued yesterday, here’s Apple:

“Starting today, Apple Card users can choose to grow their Daily Cash rewards with a Savings account from Goldman Sachs, which offers a high-yield APY of 4.15 percent — a rate that’s more than 10 times the national average. With no fees, no minimum deposits, and no minimum balance requirements, users can easily set up and manage their Savings account directly from Apple Card in Wallet.

‘Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,’ said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. ‘Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.’

Once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. The Daily Cash destination can also be changed at any time, and there’s no limit on how much Daily Cash users can earn. To build on their savings even further, users can deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance.”

Like Apple Card, this savings account is run through Goldman Sachs. This means Apple doesn’t need to have a banking charter and get bogged down by regulatory items. More on this shortly.

It’s not fair to say this is just a Goldman Sachs savings account wrapped in an Apple shell or covering.

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Above Avalon Membership

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