Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL)’s Apple Pay Will Be Used To Sell More Iphones – James Gautrey

Apple Inc. (NASDAQ:AAPL) is in the process of setting up Apple Pay, a platform it believes will have an impact on the way people carry out transactions in the future using iPhones. During an interview on CNBC, Schroder’s technical specialist, James Gautrey, questioned Apple’s motive with the launch of Apple pay as he believes it will not have a significant impact on the company’s total earnings.

Best Selling Apps For Iphone and iPad

“I’d question whether there is a good revenue model ahead of it. For Apple Inc.(NASDAQ:AAPL) what this is really about is locking you in, to continue to use its products, to continue  buying iPhones each time they come  out, “said Mr. Gautrey.

Gautrey argues that Apple Inc. (NASDAQ:AAPL)’s iPhone sales in the future will be more than guaranteed should iPhone users become addicted to the service. There are already reports that Apple has sealed deals with a number of banks that will see it get some fees from any transactions that consumers carry-out on the platform in place of debit and credit cards.

Gautrey also remains skeptical about the mobile payment systems market potential, and whether it will have any significant impact on Apple’s total revenue in the years to come.

“[…] Apple Inc.(NASDAQ:AAPL) is a big company already they are $200 billion worth of revenue. Actually, numbers I came up of people even if spending significant amount makes perhaps about 4 or 5% difference to Apple’s revenue growth. So this is really about getting you to buy new iPhone as soon as they come out not transforming Apple’s financial model. Margin is too thin in the payment space”

Swipe fees on credit and debit cards have over the years acted as one of the revenue streams for banks, a stream they will have to share with the emergence of more mobile payment systems in the future. Apple Inc.(NASDAQ:AAPL) could not have got it right, any better, with the unveiling of Apple Pay, at a time when consumers are yearning for products that make their lives easy especially in carrying out transactions.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!