On Friday Goldman Sachs made a stark prediction that it expects iPhone shipments to drop 36% during the third quarter due to COVID-19 and downgraded Apple’s stock status to “sell.”
The brokerage said that it expects overall selling prices for mobile devices to drop during the impending global economic recession and will remain low beyond when the recession is over. In a note seen by Reuters, the bank says:
“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,”
Goldman Sachs even went as far as to say that Apple will not launch their flagship models until early November, dismissing the September launch tradition. This news comes the same week Apple launched their mid-range brand new iPhone SE, at $399 replacing the iPhone 8 lineup and aimed at a user demographic that for the most part the company ignored for years.