Goldman Sachs Whacks Apple Inc. (AAPL) Price Target

Apple cuts production orders for all three new iPhone models

According to a report by the Wall Street Journal on Monday, citing people with knowledge of the matter, production orders for all three models of iPhones, which Apple Inc unveiled in September, have been reduced by the tech company in recent weeks.

Apple shares were down 3.7 per cent at US$186.38 on Monday, while Lumentum, Skyworks Solutions and Qorvo were down between 2.7 to six per cent. "(NASDAQ:AAPL)'s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received by users outside of the USA", wrote Hall, who lowered his Apple Inc.

In the bearish note, Rod Hall and his analyst team say that it seems like Apple "miscalculated on the price/feature balance for the [iPhone] XR" and that Apple's less-expensive premium phone may have missed the mark.

Apple (NASDAQ:AAPL)'s stock had its "neutral" rating reaffirmed by equities researchers at Goldman Sachs Group in a report released on Thursday, October 25th.

Goldman Sachs now sees Apple's earnings per year for fiscal 2019 at Dollars 13.40, approximately in-line with Apple's last three years next-twelve month average. According to the report, the iPhone XR is hard hit, with Apple slashing a planned production run of 70 million units by up to a third. The undisclosed guidance led investors and analysts to believe that iPhone demand is declining.

The end of reporting on unit sales comes just as Apple is generating little growth in units in its iPhone business. The firm had revenue of $62.90 billion for the quarter, compared to the consensus estimate of $61.55 billion. Taken on its own, this could be a sign that iPhone sales are slowing down as prices begin to rise.

There's a good chance that this year we will see a similar situation with iPhone iPhone XS and XR. Now a new report has added fuel to the fire, potentially causing fresh stock market jitters.

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