Topic: Apple Card

The hosts discuss the lack of exciting new developments in technology, dismissing the Apple Vision Pro and the "GPT store" as underwhelming. Dvorak reminisces about the early days of microcomputing, the S-100 bus, and the Hercules graphics card, noting that early tech pioneers often cashed out and retired early. They suggest the current era is one of stagnation where big tech companies dominate through data and GPU ownership.

The show reviews new album art submissions and discusses the technical update to Apple Podcasts regarding per-episode art. A "boots on the ground" story from an Alabama lawyer details how an elderly woman lost $40,000 to gift card scammers, while another local report describes a "grandma scam" involving AI-generated voices of relatives in distress.

Apple launched a high-yield savings account offering 4.15% interest for Apple Card users, which the hosts view as a direct move to preempt Elon Musk's plans for an "everything app" (X.com) with financial services. They question the antitrust implications of tying financial products exclusively to the iPhone.

Goldman Sachs is experiencing a 2.93% net charge-off rate on the Apple Card, nearly double the rate of competitors like JPMorgan. Data reveals that 28% of Apple Card loans were issued to customers with FICO scores below 660, leading to significant defaults.

Apple's new initiative to allow 13-year-olds to build credit through family sharing is criticized as a way to "enslave" children into the banking system. The hosts argue this is a precursor to a wider rollout of digital wallets and Universal Basic Income.

The Apple Card, backed by Goldman Sachs, faced allegations of gender bias after high-profile users like Steve Wozniak reported their wives received significantly lower credit limits despite shared assets. Tech commentator Kara Swisher attributed the bias to the lack of diversity among the programmers who write the algorithms. The hosts dispute this, suggesting the code is likely written by a diverse global workforce and that the issue is more about the "black box" nature of automated financial decisions.

A host describes a "creepy" experience where Chase Bank automatically updated a new credit card number within his Apple Wallet without his intervention. This suggests a deep, undisclosed level of connectivity between major financial institutions and Silicon Valley tech giants regarding user data and account management.

The telecommunications industry is moving toward eSIM technology, which replaces physical SIM cards with software-based identifiers. Critics and the Justice Department are examining the transition due to concerns about security vulnerabilities and the potential for easier hacking or unauthorized switching.

The transition to the iPhone 7 is noted for its significant speed improvements and better radio support for T-Mobile's LTE frequencies. However, Apple CEO Tim Cook's stated goal to "kill cash" through Apple Pay is criticized as an attempt to position the company as a middleman in every transaction. The discussion also touched on the frustration of slow EMV chip card readers and the lack of actual security provided by the new payment standards.

American credit cards equipped with chips are failing to utilize the standard PIN security protocol in Europe, instead defaulting to a signature-based system. Furthermore, European point-of-sale terminals are offering dynamic currency conversion that applies unfavorable exchange rates to unsuspecting American travelers.