Citing coronavirus-related lockdowns around the world, analysts at Goldman Sachs are predicting a 36% drop in iPhone shipments during the current quarter, Reuters is reporting. The analysts have also lowered their price target for the stock by 7% to $233 in their report forecasting the drop in iPhone demand.
According to the publication, a Goldman “sell” rating is relatively rare. Of the stocks in the investment bank’s global equity coverage universe, 15% have sell ratings, compared with 46% “buy” and 39% “hold.”
“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.
Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, which holds Apple shares, said he expects a significant drop in iPhone sales, but 36% seemed “extreme.”
Apple shares fell 1.6% to $282.13 on Friday morning following the rating downgrade from Goldman Sachs.