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NewsBreak: Apple Rejects Goldman Thesis, Says TV+ Won't Hit Profit

Published 13/09/2019, 19:18
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Investing.com - Apple (NASDAQ:AAPL) shares cut some losses Friday after the tech giant rejected Goldman Sachs’ warning that the introduction of Apple TV+ would hurt its bottom line.

  • Apple said it does not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on its financial results, CNBC reported Shares were down 1.9% in afternoon trading, off their lows.

  • Goldman earlier warned that Apple’s profit margins for hardware will suffer with the launch of the TV+ free trial, forecasting the impact on earnings per share for fiscal first quarter 2020 to be as much as 16%.

    • Apple announced this week that it plans to offer one year free of its streaming service with the purchase of certain hardware. The service is otherwise priced at $4.99 per month.

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