Goldman predicts 36% drop in iPhone shipment, says time to sell Apple shares

spike

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

(Reuters) – Goldman Sachs said on Friday it expects iPhone shipment to drop 36% during the third quarter due to coronavirus-related lockdowns around the world and downgraded Apple Inc stock to “sell”.

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 devices longer and choose less expensive Apple options when they do buy a new device,” Goldman Sachs analysts said in a note.

Earlier this week, Apple released a smaller iPhone priced at $399, lowering the starting price for the company’s smartphone line to broaden its appeal among budget-conscious customers.

Goldman said it does not expect the company to launch the upcoming iPhone models until early November, as limited global travel could impede Apple’s final engineering and production process.

Reporting by Munsif Vengattil in Bengaluru; Editing by Shailesh Kuber

Source Article

Next Post

Airline investor Bill Franke digs in for a slow industry recovery

Frontier Airlines planes stand at gates on the A Concourse at Denver International Airport in Denver. David Zalubowski | AP More government aid and health checks for travelers will be needed to get the airline industry through the coronavirus crisis, according to longtime discount-airline investor Bill Franke. Air travel in the […]