Apple counters Goldman call on ‘negative impact’ of Apple TV+ trial

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

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 2.7% in the day, cut losses by more than 1% on the news. They were last down about 1.7% at $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