Moscow, 16 Oct — “News. Economy”
The macroeconomic situation in China could adversely affect the demand for the iPhone, says Goldman Sachs analyst Rod Hall. In his opinion, it will affect the dynamics of Apple’s profits.
Hall wrote in a letter to clients that he sees “numerous signs of a rapid slowdown in consumer demand in China” that may affect the financial results of Apple Inc. If weak consumer demand will continue to affect the demand in the premium segment, Apple will not be able to work better than the expectations of wall street.
In the third quarter of 2018 smartphone sales in China could fall by 15 percent annually, he said. Hall fears a weak Outlook for Apple in the December quarter. “Apple” the company will announce the results of the 1st November, then the same is expected to review development in the Chinese market. The analyst suggests that the forecast of the smartphone manufacturer is quite conservative until Apple find points of growth in the Asian market.
Current projections of the Hall, Apple’s earnings per share in the current fiscal year will be $11,78, and 2019 — $13,77. In a worst case scenario, Apple’s net profit per share in the fourth quarter may be 4% below current forecasts.
A large part of the growth potential of Apple are focused on the sales of phablets in China, said Hall. Sale the large Apple “can at least partially offset” the negative effect of reducing consumer demand in China, but does not solve the problem completely, said Goldman Sachs.
If weak consumer demand will persist, the likelihood that Apple will be able to increase the profit in the fourth quarter of 2018, will be reduced. Negative review of Goldman Sachs to the address of the Apple caused the fall of quotations of shares of the iPhone maker.
Goldman Sachs recommended to keep Apple’s stock. The annual growth potential of the company’s shares in the Bank is estimated at 8% from the current level, the target price is $240 per share.
The expectations of Goldman Sachs comply with the consensus forecast of analysts polled by Thomson Reuters. Of the 41 analyst who participated in the survey Agency, 28 recommend buying paper manufacturer iPhone, 13 to keep. The annual target for consensus is $236,9
According to analysts, of the 80 million smartphones that Apple is expected to sell in the fourth quarter, 13 million will be implemented in China. This is 16% of all smartphone sales company. In the fourth quarter of 2017 iPhone sales in China accounted for 19% of all sales, and in 2016 — 18%.
Read more •••