Apple is one of the biggest tech companies in the world. From iPhones to iPads to Macs, the product line is not only one of the best branded, but one of the best functioning for their price. The Apple ecosystem is the cornerstone of the company. The ecosystem is made up of each device’s connection to the other, creating a seamless experience for the user. One example of this is how all your iMessages, emails, photos, and FaceTime calls can be accessed across all Apple devices. Beyond the individual hardware products, the software updates Apple has introduced through built-in apps have been game changing.
Some of these updates have thrown previously massive startups which built their product around a feature Apple had yet to integrate into their systems. One prime example of this is Klarna, a fintech company allowing customers to “buy now, pay later.” Specifically, Klarna provides online financial services such as payments for online storefronts and direct payments along with post-purchase payments. Over its history the firm has raised $800 million from investors. Currently, Klarna’s valuation sits around $6.7 billion, a massive decline from its previous $45.6 billion value derived from a 2021 cash injection from Japan’s SoftBank. Apple seems to be a major cause for this because of their latest feature which includes installment loans enabling users to access features similar to what Klarna already does.
What do you think about Apple’s implication on Klarna and will more startups be hurt by Apple’s updates down the road?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.