As it lowered its recommendation on Apple Inc.'s stock from neutral to sell, Goldman Sachs noted that the tech firm could lose one-third of its iPhone sales in Q2. Analysts, with the inclusion of Rod Hall, said in a note that iPhone unit sales are ready to fall by 36 percent year-on-year (YoY) in Q2 as a result of the COVID-19 pandemic, prior to rebounding to reach a 2 percent drop by Q4 of 2020, Bloomberg reported.
Although the tech company no longer discloses unit sales for its smartphone lines, Apple is forecasted to sell 28 million iPhones for the quarter concluding in June, per seven analysts in a poll by Bloomberg. Hall reduced his Apple price target from $250 to $233, which is said to be the second-lowest among the analysts that Bloomberg monitored.
On Thursday (April 16), Apple CEO Tim Cook headed up a virtual meeting to discuss concerns regarding the coronavirus’ impact and to explore the company's plan to go back to work. Cook characterized the pandemic as an “uncertain and stressful moment.” However, the executive expressed confidence that the firm would come out of the crisis strong, as it did following the 2008 recession and a close call with bankruptcy in the late 90s.
Cook noted that testing for the coronavirus was a possibility, but that plans are not currently in place. The CEO emphasized the company’s formidable financial position, noting that it has been paying retail staffers amid store closures. However, Cook reportedly said that “I won’t tell you Apple won’t be impacted,” pointing out that his aim is to operate the company for the long haul instead of making modifications in the near term.
Apple has not disclosed when staffers can return to their offices, but Cook noted that social distancing and temperature checks will be put in place when the time comes.