Tags: Apple | Goldman Sachs | sales | profit

Apple Falls After Goldman Sachs Cuts Sales, Profit Estimates

Apple Falls After Goldman Sachs Cuts Sales, Profit Estimates
Apple CEO Tim Cook

By    |   Thursday, 02 June 2016 11:36 AM EDT

Apple Inc. declined on Thursday after Goldman Sachs cut its price target and profit estimates for the maker of the iPhone.

Simona Jankowski, a technology analyst at the Wall Street firm, cut her 12-month price target of $124 from $136 a share, citing lower growth estimates for the smartphone industry.

Apple slipped 0.7 percent to $97.82 by 11:08 a.m. Thursday. The stock has fallen about 7.1 percent this year, while the S&P 500 has gained 2.6 percent. Apple closed at an all-time high of $132.54 on May 22, 15.

Jankowski lowered her fiscal 2016 earnings per share estimate to $8.39 from $8.40, compared with the FactSet consensus of $8.29. She cut the 2017 estimate to $9.70 from $10.53 and 2018 forecast to $10.19 from $11.42.

As for iPhone sales, she reduced the 2016 estimate to 211 million units from 212 million units, 2017 forecast to 231 million units from 243 million and 2018 prediction to 223 million units from 251 million.

She also cut her estimate for global smartphone unit sales growth to 5 percent from 6 percent for 2016, and to 4 percent from 7 percent in 2017. She also sees reduced average selling prices for phones.

“Our reductions are driven by lower market growth, as well as lower ASPs on a greater shift from developed to emerging markets, which we expect will drive a higher mix of the lower-priced iPhone SE (and its successors) relative to the higher-priced iPhone 7 (and its successors),” Jankowski said in a report obtained by Newsmax Finance.

Apple can now count Warren Buffett as a major shareholder after his Berkshire Hathaway bought $1.1 billion of its stock during the first quarter, regulatory filings show. Billionaire investor Carl Icahn in April said he sold his 45.8 million shares of Apple on concerns that sales in China were slowing.

© 2026 Newsmax Finance. All rights reserved.


StreetTalk
Apple Inc. declined on Thursday after Goldman Sachs cut its price target and profit estimates for the maker of the iPhone. Simona Jankowski, a technology analyst at the Wall Street firm, cut her 12-month price target of $124 from $136 a share, citing lower growth estimates...
Apple, Goldman Sachs, sales, profit
305
2016-36-02
Thursday, 02 June 2016 11:36 AM
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