If it's a sign of maturity to acknowledge when you've made a mistake, then Apple (AAPL) -) has seemingly done a lot of growing up over the past few months.
Apple was riding high at the end of the last decade. In 2018 the tech hardware giant became the world's first company to be valued at $1 trillion. Riding off of that high, the company began to expand its presence to an area in which it had little experience: finance.
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Apple and Goldman Sachs (GS) -) launched their game-changing partnership, the Apple Card, in 2019. At launch, the Apple Card featured perks like daily cashback, no fees, tightened privacy and security.
That partnership was expanded earlier this year when the companies unveiled a high-yield savings account that offers 4.15% APY.
But that partnership between two seemingly mismatched bedfellows seems to be coming to an end.
Apple has given Goldman a proposal to end its credit card and savings account partnership within the next 12 to 15 months, CNBC reported, citing a person familiar with the discussions.
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Apple didn't return a request for comment from TheStreet, but the company told CNBC that "Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives."
“The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them.”
Despite Apple's proclamation, this isn't the first report suggesting that the Apple Card is struggling.
According to the Wall Street Journal, both Apple Card and the Apple Savings accounts are underperforming, and Goldman Sachs executives are itching to axe the bank’s partnership with Apple.
Goldman Sachs has faced numerous headwinds since the card was launched. The investment banking giant lost over $1.2 billion in 2022, with many of the losses tied to its Apple Card unit.
According to the Wall Street Journal, a few Goldman Sachs executives have so far blamed Apple for this investigation since Apple Card customers get billed at the start of each month leading to Goldman Sachs customer service employees to become overwhelmed. The bank has tried to push Apple to change this billing process, but has not been successful in its efforts.
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