Goldman Sachs (GS) Expects 36% Fall in iPhone Shipment during 3Q

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

The brokerage company 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.

Goldman Sachs analysts said in a note,

“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,”

Apple Cheaper iPhone

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

Goldman Sachs (GS) 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.

Apple Stock

Apple Inc. stock on Thursday traded at beginning with a price of $ 284.69 and when day-trade ended the stock finally fell -1.18 to reach at $285.51. The analyst’s mean target price for 307.26 is while analysts’ mean recommendation is 1.98. Stock value has moved between $ 170.27 -$327.85 in the last one year.

Its yearly performance is 43.88% and the net profit margin is 21.50%. Annual EPS Growth of the past 5 years is 13.00%. The current share price indicates that stock is -2.60% away from its one year high and is moving 19.05% ahead of its 52-week low.

AAPL Chart
AAPL Chart