Apple shares were moving up 0.88% to $195.04 Tuesday morning, as the broader U.S. market bounced back from a rough day of trading on Monday due to worries about escalating trade tensions with Europe.
Apple CEO Tim Cook first indicated on the company's recent June quarter earnings call that the new card, first announced in March, would be available starting in August. On Tuesday, some, but not all, Apple customers who had indicated interest in owning the card will receive an invitation to sign up for it.
The card is aimed at cultivating iPhone users' loyalty to Apple's suit of new services, as Apple looks to strengthen its iOS ecosystem as a platform for users to stay on instead of using other platforms for commerce and entertainment.
The card carries no fee and offers 2% cash back to users who make purchases with Apple Pay, as well as an app that aids users' ability to categorize purchases and organize personal finances. The app and card are both centered on privacy and protection of information. Users can get a physical card made of titanium, but it has no numbers on it.
The Apple Card is part of Apple's burgeoning and higher-margin Services business, which Morgan Stanley analysts forecast will grow from 18% of the company's total revenue and 30% of its total gross profit in 2019, to 27% and 44%, respectively, by 2023. While Apple Card adoption is not expected to ramp up significantly in 2019, Morgan Stanley analyst Katy Huberty wrote in a recent note that "we still expect easing App Store comps in China as well as new Services, starting with Apple Card launching in August, to contribute incremental Services revenue in calendar year second half 2019."