(Reuters) – Goldman Sachs said on Friday it expects iPhone shipment to drop 36% during the current quarter due to coronavirus-related lockdowns around the world and downgraded Apple Inc stock to “sell”.
FILE PHOTO: Apple iPhone 11’s are pictured inside of the Apple Store on Fifth Ave in the Manhattan borough of New York, New York, U.S., September 20, 2019. REUTERS/Carlo Allegri
Apple shares fell 1.6% to $282.13 on Friday morning, bucking a 1.5% rise for the benchmark S&P 500.
The Goldman analysts also lowered their price target for the stock by 7% to $233 in its report forecasting the drop in iPhone demand for the quarter ending in June, Apple’s fiscal third quarter.
The brokerage noted that average selling prices for consumer devices are likely to decline during a recession and remain weak well beyond the point when units recover.
“We do not assume that this downturn results in Apple losing users from its installed base. We simply assume that existing users will keep…
Source Reuters Tech News
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