Tags: apple | tv | goldman | stock | price

Apple Says TV+ Service Won't Harm Results, Refuting Goldman

Apple Says TV  Service Won't Harm Results, Refuting Goldman
(Prykhodov/Dreamstime)

Friday, 13 September 2019 02:57 PM

Apple Inc. said a new video service won’t have a material impact on its financial results, seeking to counter research from a Goldman Sachs analyst, who cut his share price target on concern that aggressive pricing of the TV+ offering will trim profit.

Earlier in the week, Apple outlined a strategy that involved lower prices on certain devices and services, including a monthly cost of $4.99 for TV+. That’s a departure for a company that has historically charged premium prices to support fat profit margins.

Rod Hall, the Goldman Sachs analyst who covers Apple, cut his price target on Apple shares to $165 from $187, saying the company’s plan to offer a trial period for TV+ was “likely to have a material negative impact” on average selling prices and earnings per share.

“We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results,” Apple said in an email.

The stock (AAPL) jumped after the statement, trimming losses from earlier in the day. It traded down 1.8% at $219 in afternoon action in New York.

The TV+ service is entering a crowded video-streaming field that already includes Netflix Inc., Amazon.com Inc., Hulu and AT&T Inc.’s HBO. In November, Walt Disney Co. plans to launch a Disney+ streaming service, with a giant catalog of titles, for $6.99 a month. Netflix’s entry-level subscription is $8.99 a month in the U.S.

Apple, which doesn’t currently have a back catalog of content for TV+, announced the $4.99-a-month pricing on Tuesday, sparking a rally in its shares and declines in Netflix and Disney stock. In India, the TV+ service will be 99 rupees ($1.40) a month.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Apple Inc. said a new video service won't have a material impact on its financial results, seeking to counter research from a Goldman Sachs analyst, who cut his share price target on concern that aggressive pricing of the TV+ offering will trim profit.
apple, tv, goldman, stock, price
284
2019-57-13
Friday, 13 September 2019 02:57 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved