Apple’s early-year share price decline is creating an attractive entry point for investors, according to Goldman Sachs.
Access deep analyst research only on InvestingPro — 55% off Analyst Michael Ng told investors in a note Tuesday that Apple stock, down about 5 percent year-to-date, has likely been weighed by “commodity cost inflation and App Store concerns,” but argued that the weakness “is a buying opportunity” ahead of what it expects to be a strong iPhone cycle.
Goldman Sachs forecasts first-quarter fiscal 2026 earnings of $2.66, matching consensus, and expects iPhone revenue to grow 13 percent year over year.
The bank models iPhone unit shipments rising 5 percent, including a 26 percent increase in China, with price and mix improvements adding another 8 percent.
“We view the stock weakness as a buying opportunity into a continuation of the iPhone refresh cycle,” Ng wrote.
Goldman expects iPhone demand to stay robust over the next two years, helped by the upcoming iPhone Fold, projected at 4.5 million units in fiscal fall 2026 and 25.4 million in fiscal 2027, as well as Apple’s shift toward a biannual launch cycle and new software upgrades through iOS and Siri 2.0.
While App Store spending slowed to 7 percent growth in the quarter, Goldman said Services revenue should increase 14 percent, supported by gains in categories including iCloud+, AppleCare+ and traffic acquisition costs.
The firm added that new App Store ad formats should provide “further tailwinds” later in fiscal 2026.
Ng believes Apple’s partnership with Google Gemini and sustained iPhone demand should reinforce that the device “will remain the consumer device of choice for accessing new AI tools,” easing investor concerns about competitive pressures.
