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

Published 09/13/2019, 02:18 PM
Updated 09/13/2019, 02:46 PM
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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.

- In a statement to CNBC, 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." Shares were down 1.83% at $218.99 at 2:38 p.m. ET, up from their low at $217.03.

- 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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