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Apple: A Big Dilemma

Seeking Alpha2021-09-30

Summary In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users. Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024. ...

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Tanyl
·2021-10-01
My Apple profit is less
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2
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Tanyl
·2021-10-01
Why Apple price is moving very slow
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2
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- GrowMoneyTre:
  yes
  2021-10-01
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Rakhi45
·2021-09-30
As long as more people buy apple phone, Apple pay user base will grow.
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3
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GrowGrowGrow
·2021-09-30
Grow Grow Grow
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1
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Tanyl
·2021-09-30
Apple price up a bit
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- GrowGrowGrow:
  Grow Grow Grow
  2021-09-30
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IcySilver
·2021-09-30
$Apple(AAPL)$surely needs a more substantial future to preserve its market lead.
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1
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- RS142:
  yes
  2021-09-30
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Zwei2
·2021-09-30
Nice
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3
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Rteo
·2021-09-30
Big dilemma
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3
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jamjam
·2021-09-30
APPLE products seems to be getting boring. Maybe something like apple power plug. Expand more into xiaomi lifestyle products seems to be the way out.
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Denn205
·2021-09-30
Ok
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4
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- jamjam:
  ok
  2021-09-30
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- Wanlin927:
  Ok
  2021-09-30
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Grit100
·2021-09-30
Like n comment pls. Thx
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6
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- MarcO:
  ok
  2021-09-30
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NPC69
·2021-09-30
Like
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7
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- Denn205:
  Ok
  2021-09-30
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Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AAPL":"苹果"},"translate_title":"苹果：一个大困境","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AAPL":0.9},"content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":864642890,"gmtCreate":1633100319324,"gmtModify":1633100319519,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":9,"crmLevelSwitch":0},"htmlText":"My Apple profit is less","listText":"My Apple profit is less","text":"My Apple profit is less","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/864642890","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":864642348,"gmtCreate":1633100279472,"gmtModify":1633100279716,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":9,"crmLevelSwitch":0},"htmlText":"Why Apple price is moving very slow","listText":"Why Apple price is moving very slow","text":"Why Apple price is moving very slow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/864642348","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6062473,"gmtCreate":1633101821376,"gmtModify":1634724599599,"authorId":3555988672606844,"author":{"id":3555988672606844,"authorId":3555988672606844,"name":"GrowMoneyTre","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":864642348,"type":1,"supId":0,"prevId":0,"content":"<u>yes</u>","text":"<u>yes</u>","html":"<u>yes</u>"}],"langContent":"CN"},{"id":865453464,"gmtCreate":1633012676638,"gmtModify":1633012676800,"author":{"id":"4092106757468390","authorId":"4092106757468390","name":"Rakhi45","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"As long as more people buy apple phone, Apple pay user base will grow.","listText":"As long as more people buy apple phone, Apple pay user base will grow.","text":"As long as more people buy apple phone, Apple pay user base will grow.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/865453464","repostId":1113114898,"repostType":2,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":865494351,"gmtCreate":1633009440490,"gmtModify":1633009574759,"author":{"id":"3582948757581957","authorId":"3582948757581957","name":"GrowGrowGrow","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Grow Grow Grow&nbsp;","listText":"Grow Grow Grow&nbsp;","text":"Grow Grow Grow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/865494351","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":865406997,"gmtCreate":1633008757251,"gmtModify":1633008757468,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":9,"crmLevelSwitch":0},"htmlText":"Apple price up a bit","listText":"Apple price up a bit","text":"Apple price up a bit","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/865406997","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6050273,"gmtCreate":1633009462189,"gmtModify":1634725602326,"authorId":3582948757581957,"author":{"id":3582948757581957,"authorId":3582948757581957,"name":"GrowGrowGrow","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865406997,"type":1,"supId":0,"prevId":0,"content":"Grow Grow Grow","text":"Grow Grow Grow","html":"Grow Grow Grow"}],"langContent":"CN"},{"id":865579721,"gmtCreate":1633007209878,"gmtModify":1633007546101,"author":{"id":"3574577404599862","authorId":"3574577404599862","name":"IcySilver","avatar":"https://static.tigerbbs.com/484d3b69652c2ca3d6cd65bc1007a60b","vip":2,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>surely needs a more substantial future to preserve its market lead.","listText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>surely needs a more substantial future to preserve its market lead.","text":"$Apple(AAPL)$surely needs a more substantial future to preserve its market lead.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/865579721","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6050756,"gmtCreate":1633011639742,"gmtModify":1634725563220,"authorId":3574118564601995,"author":{"id":3574118564601995,"authorId":3574118564601995,"name":"RS142","avatar":"https://static.tigerbbs.com/22d2d9b1f352da24e6ea75b557ac987a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865579721,"type":1,"supId":0,"prevId":0,"content":"yes","text":"yes","html":"yes"}],"langContent":"CN"},{"id":865527582,"gmtCreate":1633004652328,"gmtModify":1633004652486,"author":{"id":"3580356429010047","authorId":"3580356429010047","name":"Zwei2","avatar":"https://static.tigerbbs.com/9d0132a4cde9155d859c3873325d194e","vip":1,"crmLevel":6,"crmLevelSwitch":0},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/865527582","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":865527820,"gmtCreate":1633004626060,"gmtModify":1633004626771,"author":{"id":"3582595806100338","authorId":"3582595806100338","name":"Rteo","avatar":"https://static.tigerbbs.com/ba4c61a94c707cd25f18400b8cc52a4c","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Big dilemma","listText":"Big dilemma","text":"Big dilemma","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/865527820","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":865523533,"gmtCreate":1633003828765,"gmtModify":1633007324308,"author":{"id":"3559204036277229","authorId":"3559204036277229","name":"jamjam","avatar":"https://static.tigerbbs.com/6542201483b33e63d9036c1e565275b2","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"APPLE products seems to be getting boring. Maybe something like apple power plug. Expand more into xiaomi lifestyle products seems to be the way out.","listText":"APPLE products seems to be getting boring. Maybe something like apple power plug. Expand more into xiaomi lifestyle products seems to be the way out.","text":"APPLE products seems to be getting boring. Maybe something like apple power plug. Expand more into xiaomi lifestyle products seems to be the way out.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/865523533","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":865565231,"gmtCreate":1633003402700,"gmtModify":1633003403110,"author":{"id":"3575606306400947","authorId":"3575606306400947","name":"Denn205","avatar":"https://static.tigerbbs.com/2d2f59642eabe148cd6384a0ce937629","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/865565231","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6049440,"gmtCreate":1633003863918,"gmtModify":1634725670705,"authorId":3559204036277229,"author":{"id":3559204036277229,"authorId":3559204036277229,"name":"jamjam","avatar":"https://static.tigerbbs.com/6542201483b33e63d9036c1e565275b2","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865565231,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":6049542,"gmtCreate":1633004457022,"gmtModify":1634725662257,"authorId":3582025117705198,"author":{"id":3582025117705198,"authorId":3582025117705198,"name":"Wanlin927","avatar":"https://static.tigerbbs.com/8dcfce5bedd37636dfe4d9ca052f0f47","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865565231,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"CN"},{"id":865587624,"gmtCreate":1633002167932,"gmtModify":1633002168225,"author":{"id":"3581502897038686","authorId":"3581502897038686","name":"Grit100","avatar":"https://static.tigerbbs.com/c3c65cb20cfcce91cc07fddb27bc3ccd","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Like n comment pls. Thx","listText":"Like n comment pls. Thx","text":"Like n comment pls. Thx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/865587624","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6049273,"gmtCreate":1633002368207,"gmtModify":1634725685158,"authorId":3579404034455974,"author":{"id":3579404034455974,"authorId":3579404034455974,"name":"MarcO","avatar":"https://static.tigerbbs.com/be5697566d0f1acd47a2c200cbfe60f0","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865587624,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"}],"langContent":"CN"},{"id":865585568,"gmtCreate":1633001933449,"gmtModify":1633001933906,"author":{"id":"3584779133668268","authorId":"3584779133668268","name":"NPC69","avatar":"https://static.tigerbbs.com/47e7ac55312ae8dd1c9e7cb92adad089","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/865585568","repostId":1113114898,"repostType":4,"repost":{"id":"1113114898","pubTimestamp":1633001805,"share":"https://www.laohu8.com/m/news/1113114898?lang=&edition=full","pubTime":"2021-09-30 19:36","market":"us","language":"en","title":"Apple: A Big Dilemma","url":"https://stock-news.laohu8.com/highlight/detail?id=1113114898","media":"Seeking Alpha","summary":"In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.Apple  has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 mil","content":"<p><b>Summary</b></p>\n<ul>\n <li>In a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.</li>\n <li>Another note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.</li>\n <li>However, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.</li>\n <li>Facebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.</li>\n <li>The future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdd5b8fd99a0523d96bf052afd8c1b37\" tg-width=\"1536\" tg-height=\"988\" width=\"100%\" height=\"auto\"><span>Nikada/iStock Unreleased via Getty Images</span></p>\n<p>Apple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures&nbsp;has estimated&nbsp;that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions&nbsp;could hit&nbsp;$686 billion by 2024.</p>\n<p>These are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.</p>\n<p><b>Potential of payments services</b></p>\n<p>Loup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7da83d2ee0a94f22948bad15e574d818\" tg-width=\"758\" tg-height=\"312\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Juniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.</p>\n<p>Another big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.</p>\n<p><b>Challenges faced by Apple Pay</b></p>\n<p>Despite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.</p>\n<p>Alibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review&nbsp;mentioned the huge obstacles&nbsp;faced by Apple Pay in replicating the success of Alipay in the US.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/147af64bc9ea22c57dcf284cf922d3ab\" tg-width=\"640\" tg-height=\"448\" width=\"100%\" height=\"auto\"><span>Figure: Adoption of Apple Pay for transactions. Source: Pymnts</span></p>\n<p>A recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.</p>\n<p>It should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.</p>\n<p>Another important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.</p>\n<p>Apple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.</p>\n<p><b>A domino effect</b></p>\n<p>Apple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2a7a020d7359f75124d44eb75b765787\" tg-width=\"625\" tg-height=\"413\" width=\"100%\" height=\"auto\"><span>Source: Loup Ventures</span></p>\n<p>Apple has offered discounts to encourage more transactions. The&nbsp;company offered&nbsp;four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It&nbsp;launched&nbsp;a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.</p>\n<p>It will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.</p>\n<p>Investors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.</p>\n<p><b>Investor Takeaway</b></p>\n<p>Apple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple: A Big Dilemma</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple: A Big Dilemma\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 19:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457628-apple-stock-big-dilemma><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4457628-apple-stock-big-dilemma","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113114898","content_text":"Summary\n\nIn a report by Loup Ventures, it estimated that Apple Pay is used by over half a billion users.\nAnother note by Juniper Research predicts Apple Pay transactions hitting $686 billion by 2024.\nHowever, Apple faces a number of headwinds due to growing competitive climate, antitrust and inherent limitation of its ecosystem.\nFacebook, Amazon, Google and other big tech players are making a strong play in gaining market share in this highly lucrative business segment.\nThe future trajectory of Apple Pay can have a domino effect on other services which increases its importance for the stock.\n\nNikada/iStock Unreleased via Getty Images\nApple (AAPL) has been making a significant effort in improving the traction of its payments system. Loup Ventures has estimated that Apple Pay is now used by over half of iPhone users or 507 million. This represents 15% growth in Apple Pay users from the year-ago period. Another study by Juniper Research has estimated that Apple Pay transactions could hit $686 billion by 2024.\nThese are good numbers for Apple but the company is also facing challenges on several fronts. It has a minuscule market share in China and is not even present in India. It is facing antitrust regulations in Europe which can limit the growth potential. Even in the domestic US market, other competitors are ramping up their efforts to gain a good chunk of digital payments. Apple does not have the retail ecosystem of Amazon (AMZN) and Alibaba (BABA), nor does it have a social media empire like Facebook (FB) and Tencent (OTCPK:TCEHY). This can limit the attraction of Apple Pay in several markets as this segment reaches maturity.\nPotential of payments services\nLoup Ventures has been making an annual study on the changing dynamics in the payments ecosystem for the past few years. Its first report in 2016 estimated that Apple Pay was used by only 67 million users which was 9% of the total iPhone installed base at that time. Since then, Apple Pay has come a long way. In the recent report, Apple Pay is estimated to have a whopping 507 million active users which is equal to 51% of the total iPhone installed base.\nSource: Loup Ventures\nJuniper Research has also estimated that Apple Pay would complete transactions worth $686 billion by 2024. When looking at Apple’s charges, this transaction scale could yield over a billion in revenue which would probably be a very high margin.\nAnother big advantage for Apple is that it further strengthens the ecosystem of hardware and services. This will further increase customer loyalty and also promote new products and services launched by Apple.\nChallenges faced by Apple Pay\nDespite the high iPhone user base and millions of customers using Apple Pay, the company will need to surmount some very high barriers to corner a big market share in this industry. The core issue with Apple is that it does not have a retail or social media platform. This was the main reason behind the poor performance of Apple Pay in China. Most of the payments segment in China is divided between Alibaba and Tencent.\nAlibaba has been able to leverage its massive retail ecosystem to lure more customers to its Alipay platform and provide more financial services. Similarly, Tencent has been able to leverage its massive social media ecosystem to gain customers for WeChat Pay. As both these giants fought over payments market share, Apple Pay ended up becoming a fringe player in China. Even Harvard Business Review mentioned the huge obstacles faced by Apple Pay in replicating the success of Alipay in the US.\nFigure: Adoption of Apple Pay for transactions. Source: Pymnts\nA recent report by Pymnts shows Apple's dilemma. While the devices capable of supporting Apple Pay have increased massively, the actual share of transactions with Apple Pay is still quite low. Higher acceptance by merchants has also not been a big help for Apple. The main issue again is the preference of customers to continue using their cards within the domestic US market.\nIt should also be noted that the Chinese financial system and US financial system are very different. Lack of credit card penetration helped Alibaba and Tencent build a valuable payments platform in China. However, this is not the case in the US where card payments are available easily.\nAnother important market where Apple lags is India. This region has significant similarities with China due to low card penetration. Hence, there has been a rapid growth in digital payments. Some of the main players in this region are Paytm (backed by SoftBank(OTCPK:SFTBY)), Amazon Pay, and Google Pay. Recently, Facebook also received regulatory permission to expand its payments option within WhatsApp which is used by over 400 million in this region. On the other hand, Apple has not even launched its payments option. It is likely that this region could see a maturity similar to China within the next few quarters. At this point, it would be impossible for Apple to gain market share from established players.\nApple also faces obstacles in the lucrative European market where regulators are looking at antitrust options for Apple Pay. If Apple is limited in its growth in the European market, it will only have a decent presence in the domestic US market which should limit the growth runway in the future.\nA domino effect\nApple Pay can be a very profitable segment on its own. However, it will have a much bigger impact on other products and services offered by Apple. For example, widespread use of Apple Pay will also help increase the sales of wearables like watches from which customers can make payments.\nSource: Loup Ventures\nApple has offered discounts to encourage more transactions. The company offered four months of free coffee at Panera Bread for customers using Apple Pay at checkout. It launched a 20% discount onGrubHubwhen customers make purchases of $10 or more and pay through Apple Pay. This is a similar strategy to Alipay and WeChat Pay in China where these companies offered massive discounts to attract customers in making smaller transactions on their platform.\nIt will be important to note the success of these initiatives over the next few quarters. If Apple is able to expand its market share with the digital payments segment in the US it could help improve the bullishness towards Apple’s services. However, the company will be facing significant challenges from powerful tech giants. It is unlikely that we will see a similar trajectory for Apple Pay in the US similar to Alipay in China due to differences in the financial ecosystem. Apple could also face a major headwind in the next few years in the payments industry due to its lack of a strong retail or social media platform.\nInvestors should closely look at the future numbers reported for Apple Pay as it will have a big impact on the growth potential of several products and services offered by the company.\nInvestor Takeaway\nApple has been making some progress in the payments industry with a higher active user base and more transactions on Apple Pay. However, it will likely have a very low market share in important international regions like Europe, China, India, and others. Even in the domestic US market, Apple will be competing against big giants like Amazon who can invest significant resources in increasing their own customer base.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6049395,"gmtCreate":1633003408790,"gmtModify":1634725673983,"authorId":3575606306400947,"author":{"id":3575606306400947,"authorId":3575606306400947,"name":"Denn205","avatar":"https://static.tigerbbs.com/2d2f59642eabe148cd6384a0ce937629","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":865585568,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":52,"commentSize":12,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}