Goldman Sachs: Apple's iPhone sales this year will disappoint, causing stock decline

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Goldman Sachs: Apple's iPhone sales this year will disappoint, causing stock decline
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Goldman Sachs underscored its lukewarm thesis on Apple and said it believes the company will ship fewer iPhones than Wall Street expects.

Goldman Sachs underscored its lukewarm thesis on Apple and said it believes the company will ship fewer iPhones in late 2019 than the 67 million the rest of Wall Street expects.

"We believe consensus is assuming a steep recovery in China, with little change in demand trajectory for other [geographies]," Hall told clients in a note."We note that iPhone shipments in the U.S. and Japan cycled up in CY18 [calendar year 2018], with U.S. shipments growing 8% year over year in CY18."

Apple shares were slightly higher in premarket trading Wednesday. The equity is up more than 27% over the last 12 months to $207.48 a share through Tuesday. Apple has in recent years incorporated more luxurious features in its phone production, hoping to combat a decelerating replacement cycle with a higher average selling price . New generations include facial recognition and wireless charging, more storage capacity and larger screens.

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