Goldman Sachs expects Apples revenue and earnings to fall 7% and 6% in the fourth quarter if the iPhones launch is delayed for a month. While this is not Goldmans benchmark forecast, such a delay could further exacerbate Goldmans already poor expectations of apple.
Analysts at Goldman Sachs expect demand to remain weak through the year to the end of the year; iPhone sales and average selling prices are disappointing; service revenue growth will slow. This will result in a sharp decline in Apples earnings per share (EPS) in fiscal 2021, which is 16% lower than the Wall Street consensus expected.
Goldman Sachs reported maintaining its sell rating on apple, raising its target price from $268 to $299, still 23% below Apples closing price on Wednesday.
After the release of the Goldman Sachs report, Apples share price opened lower on Thursday, falling below $369 in midday trading, a new intraday low since July 2, with a intraday drop of more than 5%, the largest intraday decline since April 1, leading the market.