slprescott

GeorgeBMac said:

Unless they have a bank account linked to the PayPal account (which I think is a VERY bad idea) or use EBay, what good is it?

Agreed.

In contrast, Apple could (a) offer peer-to-peer payments via Apple Pay, and (b) become an online bank that holds electronic money in people's accounts, usable at any merchant accepting Apple Pay.  That would be exciting.

Good.

I love Apple Pay and use it daily, but incentives like this may be necessary to drive uptake beyond the 'early adopters' such as many of us on this forum.

To-date, the reasons for Apple Pay have been subtle (to some people):
  - "more secure!"
  - "more convenient!"

Those are both absolutely true... but not necessarily compelling enough to change behavior of very established buying patterns.  Adding a true FINANCIAL reward for using Apple Pay may begin to turn the tide.

How do the unprofitable handset manufacturers justify continuing to lose money?

I mean this sincerely, not cynically. It doesn't seem to make sense for any for-profit company... unless they have other ways to profit from the handset sales (e.g., getting paid to bundle software, or money from ad revenue [Google Pixel]).

I wonder if some of the unprofitable players will exit over the next 2 - 3 years?

Statement 1: "if Apple doesn't walk down this path and transform itself, there will be no innovation."
Statement 2: "It is a crisis but it is also an opportunity.""

Both are false.  Apple continues to innovate in many ways, including the recent Wide Color inclusion. And this certainly is not a "crisis"; that's pure hyperbole.

icoco3 said:

... Not as nice as Apples but they were there before Apple.

Ditto for MP3 players and Tablets existing before Apple entered the market.  Those didn't turn out too badly for Apple.