On CNBC's 'Closing Bell' financial news segment on Friday afternoon, D.A. Davidson & Co. analyst Tom Forte stated that the "big story' for Apple this holiday shopping season won’t be what products consumers buy but how they pay for it. AirPods Pro [is] a good product, but I think the story for Apple’s holiday sales this year is in payments with the Apple Card."
With the iPhone market reaching a mature state, Apple has turned its focus toward expanding the number of services it offers to drive growth. That includes, as Forte pointed out, its foray into the financial services world with the launch of its Goldman Sachs-backed credit card earlier this year and the streaming wars with Apple TV+, along with its plans to dive deeper into health care services.
Forte added that although Apple’s overall business is "less dependent" on selling iPhones, Apple’s credit card will serve as a feeder to its hardware products ecosystem. Apple Card will allow users to purchase iPhones free of interest for 24 months. On top of that, the credit card offers 3% cash back on purchases. For more on this, read the full CNBC report.
Another analyst on the show stated that 60-70% of consumers buying iPhones at the Apple Store are also buying AirPods/AirPods Pro, though demand is outstripping supply at present.
Earlier this week we posted a report on that subject titled "Apple's Chinese Suppliers Reportedly get the call to Double AirPods Production due to Higher Demand."