Apple counters Goldman call on 'negative impact' of Apple TV+ trial

Apple counters Goldman call on 'negative impact' of Apple TV+ trial

Apple Inc on Friday disputed a Goldman Sachs research note which stated that the company's plans to account for the trial of its new streaming service Apple TV+ will have a "material negative impact" on its results.

CEO Tim Cook speaks at an Apple event at their headquarters in Cupertino
FILE PHOTO: CEO Tim Cook presents the Apple TV Plus trailer for "See" at an Apple event at their headquarters in Cupertino, California, U.S. September 10, 2019. REUTERS/Stephen Lam

REUTERS: Apple Inc on Friday disputed a Goldman Sachs research note which stated that the company's plans to account for the trial of its new streaming service Apple TV+ will have a "material negative impact" on its results.

"We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results," Apple told Reuters.

Goldman Sachs had earlier cut its price target on Apple saying its plans to account for the Apple TV+ trial would likely hurt its average selling prices, gross profits and earnings per share.

Shares of the company, which fell as much as 2.7per cent in the day, cut losses by more than 1per cent on the news. They were last down about 1.7per cent at US$219.17 in afternoon trading.

A spokeswoman for Goldman Sachs said the bank declined to comment on the matter beyond what was stated in the analyst's note.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Shailesh Kuber)

Source: Reuters

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