Dividends and Apple pay

Apple is a very profitable company, it sells iPhone, iMusic, the Apple operating system and people love to use it. The price point of the phone has always been higher than the average phone from Korea, Japan, and Chinese.

Last month Apple launched Apple card and Peter Misek a partner at Framework Venture Partners LP wrote an article about what you can expect if you own an iPhone.

Apple will not this year, but within a year or two, be able to examine the way you buy and spend money which will tell the Artificial Intelligence approximately how much you make. From your savings and spending habits, the phone will offer advice –¬†advertising to spend money and possibly where to save money. In addition if you need credit from loans and mortgages, your past spending patterns will give a terrific indication of what you can be preapproved for with 5 clicks of the phon or less.

All of the above is possible right now, but it will take Apple a year or two to begin the implementation and they will because there is no cost to acquire a customer, the customers already love their iPhone and were willing to pay a premium for it. There is simply too many potential dollars to earn by Apple not to do it.

Linking to dividend paying stocks, it the above case, Apple can offer more services to the existing base of users at limited cost to it, which makes the ability to use the information inside the phone to predict how well you will repay or to keep loan losses down. It will add income to Apple and the stock will continue to do well.

There are more questions than answers, till the next time – to raising questions.

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