Apple stock is now being recommended to investors to ‘sell’ this is due to a downturn in shipments and consumer demand for iPhones.
Goldman Sachs is the company to have made this change to the stock market.
Analysts see the Coronavirus as one of the leading factors behind the slowdown in sales, which will only be compounded by the decrease in average selling price of consumer products, if expectations of a worldwide recession are true.
iPhones are at the top end of the handset market for this reason they are most likely to be hit by a recession and Goldman Sachs expect a shipment drop of 36%.
The recently updated iPhone SE could help the company out as it is targeted at a price point, which is not as astronomical as the flagship handsets.
“We do not assume that this downturn results in Apple losing users from its installed base. We simply assume that existing users will keep devices longer and choose less expensive Apple options when they do buy a new device,” the Goldman Sachs note reportedly said.
Reuters Canadian multinational media conglomerate notes however that other market analysts maintain ‘buy’ or ‘hold’ ratings for Apple stock.
Covid-19 has already had major implications for the smartphone market.