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Why Apple Stock Is Losing Flavor In Today's Premarket

Published 16/10/2023, 13:05
© Reuters.  Why Apple Stock Is Losing Flavor In Today's Premarket
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Benzinga - by Shanthi Rexaline, Benzinga Editor.

Shares of Apple, Inc. (NASDAQ:AAPL) fell in Monday’s premarket as investors digested two pieces of information that may have a bearing on the company’s fundamentals.

A Bloomberg report said that sales of the latest iteration of Apple’s flagship device, the iPhone 15, have seen a slower uptake than the iPhone 14, citing data from Counterpoint Research and Jefferies analyst Edison Lee. The softness reflected the competitive threat posed by Huawei’s newest smartphone, which has overtaken the Chinese smartphone market.

A separate Wall Street Journal report said Goldman Sachs Group, Inc. (NYSE:GS) executives favor wriggling out of the investment bank’s consumer finance partnership with Apple. The two companies launched a high-yielding savings account in April and jointly offer Apple-branded credit cards. The big bank has been incurring massive losses on these operations.

With Goldman due to report on Tuesday ahead of the market open, investors may get a clear picture of how much the company is bleeding due to its presence in the consumer banking segment. If the company confirms a gradual exit, it could be a huge setback to Apple’s ambition to make it big in consumer finance.

In premarket trading, Apple stock fell 0.82% to $177.38, according to Benzinga Pro data.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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