FIRST AIRED: November 20, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program
0:00
0:00
More Info

COMING UP:Share Opener Variant 3

×

Transcript

00:00:00
>> Apple isn't getting a break. On Tuesday the iPhone maker got hit again after the second bearish note from Goldman Sachs in over a week. Apple stock closed down nearly 5% on Tuesday, after a sharp drop on Monday. It's now down more than 20% from its record high in early October, when the company was valued at $1.1 trillion.
00:00:23
Goldman saying that Apple might have miscalculated when it set the price for its new iPhone XR. Reuters correspondent Steven Nellis.>> Now this is the iPhone model that has a lot of the features of the top end model, the iPhone XS, but costs $750 versus $999. And what Goldman is saying is, Apple might have gotten it wrong and the price is still too high.
00:00:47
What consumers really wanted was something around the $600 or $700 mark that still had a lot of those features. This would be a big deal for Apple, because over the past year they grew revenue primarily through selling about the same number of iPhones as the year before, but selling them at much higher average prices.
00:01:05
>> Fear of a slow down in iPhone sales has gripped investors, especially after Apple warned earlier this month that the holiday quarter would miss Wall Street expectations. And also said it would stop reporting the number of iPhones sold, a metric that analysts and suppliers have come to count on.
00:01:23
>> So what's noteable about this Goldman Sachs note, is they're suggesting that Apple has lost its pricing power. That is, the ability to sell an iPhone for much more money than the cost of competing smartphones. Apple has had a strategy of selling its products for significantly higher prices than many of it competitors.
00:01:41
And saying, you know what, they're worth it. If Apple loses that, it's gonna change everything about the company.>> On Tuesday, Goldman cut its price target to $182, and Apple shares closed at $177.