Goldman Sachs said on Friday it expects iPhone shipment to drop 36% during the third quarter due to coronavirus-related lockdowns around the world and downgraded Apple Inc stock to "sell".
The brokerage noted that average selling prices for consumer devices are likely to decline during a recession and remain weak well beyond the point when units recover.
"We do not assume that this downturn results in Apple losing users from its installed base. We simply assume that existing users will keep devices longer and choose less expensive Apple options when they do buy a new device," Goldman Sachs analysts said in a note.
Earlier this week, Apple released a smaller iPhone priced at $399, lowering the starting price for the company's smartphone line to broaden its appeal among budget-conscious customers.
Goldman said it does not expect the company to launch the upcoming iPhone models until early November, as limited global travel could impede Apple's final engineering and production process.