Apple Inc. disputed a Goldman Sachs analyst report claiming a potentially "material negative impact" on the company's earnings resulting from Apple's plans to give away one year free trial of its upcoming Apple TV+ streaming service.
While maintaining a "neutral" rating on Apple shares, Goldman Sachs' Rod Hall reduced his price target to $165 from $187, noting he believes that "Apple plans to account for its 1-year trial for TV+ as a ~$60 discount to a combined hardware and services bundle."
Apple TV+, which will launch Nov. 1 for $4.99 per month, will be available free for one year to consumers who buy iPhone, iPad, Mac or Apple TV devices.
Apple in a statement to CNBC disputed Goldman Sachs' negative call, saying the company does not expect "the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results."
Apple momentarily reclaimed the title of a $1 trillion company on Sept. 11 following Wall Street's positive reaction to the company's annual fall product release event on the prior day, when the company debuted a slew of new products, as well as pricing details about its Apple TV+.
Apple's stock fell as much as 2.7% on Sept. 13 after Goldman Sachs' report, but rebounded slightly after Apple's statement, down 1.94% to $218.75 per share at market close.
