In a report released on Friday (17), the financial group Goldman Sachs said it expects a 36% drop in sales of iPhones during the current quarter due to the covid-19 pandemic.
As a result, the institution recommended that shareholders sell Apple shares as soon as possible – which have been falling for some time. This Friday at 2:16 pm (Brasília time), they fell another 2% in the face of the 1.75% increase in the S&P 500, the main indicator of the North American stock market. Since February, Apple’s shares have accumulated a drop of about 13%.
Goldman analysts also cut Apple’s target price by 7%. In the report, they stated that the average selling price of electronic devices in this segment will fall during the expected recession that is being driven by the current pandemic.
“We do not assume that this recession will cause Apple to lose users over the installed base. We just assume that current users will keep their devices for longer before switching to newer versions and will choose cheaper models from Apple when they buy. new ones, ”explained the analysts in the report.
It is not common for Goldman to recommend selling a stock. Within the shares that are under its global coverage, only 15% have recommendations for sale, 39% are aimed at maintaining the portfolio and 46% of shares have indications of purchase.
This week, Apple launched the iPhone SE at $ 399, lowering the initial price of the line in order to expand the potential audience. However, Goldman said that the company should not launch new products anytime soon, as the quarantine restricts the movement of engineers who accompany the Apple production process.
Chase Investment Counsel chairman Peter Tuz, who owns Apple shares, acknowledged that the sale of iPhones is expected to fall significantly, but considered 36% to be a very “extreme” estimate.