The consumer tech news of today is definitely Apple WWDC 2023. WWDC is like Google I/O, except that WWDC stands for something actually meaningful - “Worldwide Developers Conference” - which works much better than I/O (which I still don’t understand).
The way that Apple named their developers conference, by contrast to Google’s, is a nice and tidy microcosm of their whole competitive advantage. They understand how to relate to their customers. Sure, “I/O” can be a fun and interesting puzzle to solve for tech dorks, if you really dig into it, but the WWDC name is practical, accessible, and frankly, better.
Such practicality and ease of use is one quality that has gotten Apple to where it is. Another, darker, key to success, is the reach and grip-strength of the cold, slimy, tentacles of their insidious ecosystem.
I am personally experiencing this ecosystem trap, because I have an iPhone. I never wanted one, but I ventured too close to their vortex, and got pulled in. It began with the whole “blue text/green text” social pressures phenomenon they’ve engineered. Next, when I recently needed to upgrade (that first iPhone reached its end of support date), I opened an Apple Card account, in order to get a discount for a reasonable price. Just like that, Apple had me in its claws. I had the phone, and the credit card, and was only beginning to be drawn down into their infamous, stylish, user-friendly, expensive trap. This is what they do.
Introducing Apple Savings
The phones and accessories are one thing, but this Apple Card financial services lane opens up new ways to pull me even further down. For example, I currently have an “Apple Savings” account.
In case you missed it, one day this last April, Apple (partnering with Goldman Sachs) spontaneously launched Apple Savings, a “high-yield” savings account offering 4.15% interest. That interest rate got my attention. I’m not a personal finance savant, but to me, 4.15% seems like a pretty great rate for a plain old boring savings account in which to casually stash a rainy day fund.
I’ve had savings accounts with my banks, merely as a requirement to maintain a checking account. The interest rates on those savings accounts have only been observable using specialized optical equipment from NASA. Nothing anywhere remotely near to 4%.
Remarkably, there are no strings attached with Apple Savings - no minimum balance, commitment, or fees. The two principal barriers to entry for Apple Savings are the requirement to have an iPhone, and then getting an Apple Card.
I happen to have (reluctantly) acquired both, and so switching my savings account was a no-brainer; but still I was hesitant. To put it into cinematic terms, I view Apple as somewhat of an “It’s a Wonderful Life,” Mr. Potter villain. I don’t like the way they’re trying to monopolize consumer tech.
In fact, I will intersperse “It’s a Wonderful Life” bank run scene quotes, as appropriate, for the remainder of this article.
The Apple/Potter Analogy
“Can’t you understand what’s happening here? Don’t you see what’s happening? Potter (Apple) isn’t selling! Potter’s (Apple’s) buying! And why? Because we’re panicking and he’s not, that’s why!”
I have a Google/Pixel/Chrome bias, which is merely sentimental and not a real reason to avoid Apple, but what did turn into a real problem is what happened when I opened my Apple Card back in August. Those punks at Goldman Sachs did a hard pull on my credit, to approve the card application. As if I was financing a house or something. Apple never mentioned it beforehand in the process, and I’ve basically never seen that happen for any credit card that I have. Typical, pretentious, Apple pomp and circumstance.
I’m a credit-score-building enthusiast, and I’m stuck with that mark for two years now, and so that was upsetting. Such a very Mr. Potter, bullying, backstabbing move by Apple.
Their trademark pretentiousness is even physically embedded in the actual card, which, itself, is metal. Titanium, to be precise. Apple is too good for a normal credit card. They don’t write your account number anywhere on the card, because that would make it look cluttered, and they are simply too cool for that. Sleek, modern, frivolous minimalism, over functionality and utility, of course.
I guess there’s some function because if you accidentally drop it, you’ll hear it clanging and clattering on the floor. So that’s a security feature.
There was another, more ideological reason I had hesitancy toward switching to Apple Savings.
“Don’t look now, but there’s something funny going on over there at the bank, George. I’ve never really seen one, but that’s got all the earmarks of being a run!”
This Apple Savings deal rolled out just at the moment when we, as a nation, were seeing good, old-fashioned bank runs. Bank run scenes that I’d only seen in black and white photos were suddenly popping up, in full HD color, on my Twitter feed. It’s not hard to see the timing of this as Apple partnering with a big bank, to step on the throats of regional banks, at their lowest moment, to choke them to death.
I happen to hold savings with a regional bank, and immediately after Apple’s announcement (literally, the next day), they emailed an offer for a “high yield” CD. Clearly, my bank was feeling threatened.
“Now listen, I beg of you not to do this thing! If Potter gets a hold of this Building and Loan, there’ll never be another decent house built in this town. He’s already got charge of the bank, he’s got the bus line, he’s got the department stores, and now he’s after us!”
They offered a 3.75% CD. It was an obvious counter to the Apple news. Now, their offer was still quite sad. It was a seven month CD, meaning I can’t access the funds for the term, and they still couldn’t match Apple’s rate. I could get a higher rate by depositing more than I’d like, for longer, but that just compares even worse with Apple where I can deposit and withdraw any amount, all willy-nilly, and there is no minimum balance or holding period commitment.
Nonetheless, I saw this as my “It’s a Wonderful Life” moment. I grew up despising that Bailey Building and Loan patron (“Tom”), who, at the moment of George Bailey’s desperation, insisted on withdrawing his full account balance.
“I got $242 in here, and $242 isn’t going to break anybody!”
Stupid Tom! That’s not me.
There Is No George Bailey At Today’s Regional Bank
So I clicked the link on the email, prepared to be a hero, and set up the CD right then and there. What I was met with instead, was a contact form to fill out. Yes, the contact form page, like the contact page I successfully coded in html on my own home-made website in 2010. Using this technology, my bank assured me that a representative could contact me.
This was off to a rather pathetic start.
Still fighting for the little guy, I played along, and wrote a message about being interested in this offer. A day later I missed a call, and had a voicemail from a seemingly teen-aged rep, who we’ll call Chad. I waited for another call, but after a week, I took the initiative and called him back. Phone tag ensued. Finally caught him, and at that point, Chad had no idea what I was calling about. I recapped that I was interested in the 3.75% CD. He was like, “Oh yes! Just come on into our office when I’m here, and we’ll set it up!”.
At this point, I’m beyond disappointed, but still very patriotic and small-business friendly. So I told him that I lived right down the street from a branch - literally a matter of blocks away. He said that he was in another branch, 15 miles out in the suburbs and asked if I could drive out to meet him.
Now I was getting more than a little annoyed. I mentioned that I’d rather not drive there when I could literally walk to another branch. He said that he didn’t know anybody at my branch, but I should just go there and ask whoever was working there about opening a CD. End of conversation.
What was the point of the contact form? Sure seems like all along, I needed to simply walk into one of their branches, and begin from there.
Super helpful, Chad. No indication of why I needed to go the branch. No offer of any sort of streamlining. Not even a call transfer, to grease the skids at the other branch, so I wouldn’t have to begin from square one.
My conscience was at this point soothed, and I started looking into setting up the Apple Savings account, and selling out to Potter. It took about 3 clicks, and I was done. Right from my phone.
So, to recap, in response to Apple Savings offer of a no-obligation, 4.15% interest savings account, my regional bank sent out an email countering with a CD, for a lower rate, with a minimum balance. Next, they basically wasted 30 minutes of my time, on the pretense of having some online/telephone banking ability. Ultimately, the only way to set up the inferior CD at the regional bank would be to show up at a branch, and hope their CD specialist was in that day and willing to help, with whatever mysterious, archaic paperwork they needed.
It didn’t go so well as I’d like to dream. The bank owner and his wife didn’t come running after me, offering to pay interest from their honeymoon fund. This anecdote does not look good for regional banks.
Credit to Apple though. As I said at the start of the article, they make their stuff easy to use. This was so, incredibly easy. Before transferring much in, I even did a few test transactions, back and forth from my old, regional bank, and it was no problem. Smooth as butter. The contrast between Apple, and my bank was more than impressive.
And it’s a good thing I’m getting that 4.15% interest now. It’ll help pay for my $3,499 Apple Vision Pro headset later on, when I’m eventually somehow given no choice but to acquire one.
“That’ll close my account.”
“Your account’s still here; that’s a loan!”
Watching the WWDC keynote this week, I felt, for the first time since Steve Jobs passed away ... that 'buzz' I used to feel when Steve was doing these keynotes. I was giddy with excitement... and many people who I shared it with, seemed a little negative - surprisingly so... Until I saw Ben Thompson's take on it, and I felt vindicated... if you haven't seen it yet - read it here: https://stratechery.com/2023/apple-vision/
The future is so rich :)