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NewsBreak: Apple Rejects Goldman Thesis, Says TV+ Won't Hit Profit

Published 09/13/2019, 02:18 PM
Updated 09/13/2019, 02:46 PM
© Reuters.

Investing.com - Apple (NASDAQ:AAPL) shares cut some losses Friday after the tech giant rejected Goldman Sachs’ warning that the introduction of Apple TV+ would hurt its bottom line.

- In a statement to CNBC, Apple said it does "not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on its financial results." Shares were down 1.83% at $218.99 at 2:38 p.m. ET, up from their low at $217.03.

- Goldman earlier warned that Apple’s profit margins for hardware will suffer with the launch of the TV+ free trial, forecasting the impact on earnings per share for fiscal first quarter 2020 to be as much as 16%.

- Apple announced this week that it plans to offer one year free of its streaming service with the purchase of certain hardware. The service is otherwise priced at $4.99 per month.

Latest comments

Goldman sachs is well know to use such tactics remember 2008 crisis when they were first to sell the subprime to others. same game again but this time for buying.
proabably Goldman sachs was using this fake analysis to drop price and they may be buying themselves cause they were late in the game.
Thanks Apple. Please keep these analysts on check who dont know much but can for sure claim anything
I think apple has the guts to stand up to gms, and I believe they will perform to the best, all those holding will profit, as regards the media there are lot of big brokerages not invested in apple and they are afraid to bear the heat,,,,, hence the negativity
Novel concept: roll the subscription fee into the iPad price. It's only $60. I'm sure Apple is taking that approach.
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