Goldman Sachs expects iPhone shipment to drop 36% during the third quarter due to coronavirus-related lockdowns around the world and downgraded Apple Inc stock to “sell,” according to Reuters. Why? Three reasons:
° The detail of the “iPhone 12″ line-up from September/October to November “as limited global travel could impede Apple’s final engineering and production process.”
° Coronavirus-related lockdowns around the world;
° Average selling prices for consumer devices are likely to decline during a recession and remain weak well beyond the point when units recover.
The prediction is despite Apple’s second generation iPhone SE, which is now available for pre-order. Ironically, Goldman Sachs is Apple’s financial partner on the Apple Card.