The price target on Apple has been cut by Investment bank Goldman Sachs so that the lower growth expectations can be reflected for the industry of smartphone’s. The growth of the bank’s global smartphone unit had seen a recent reduction from 6 percent to 5 percent in 2016 and for next year, it would be from 7 percent to 4 percent. The price target of the bank was trimmed from $136 to $124 while ensuring that the buy rating is maintained.

The stock of the technology giant finished at %98.46. It has also been predicted by Goldman that the unit sales of the iPhone would be from 212 million to 211 million for the entire year of 2016. In a research note, the investment bank stated that the iPhone forecasts are fined tuned with the instruction of a regional build that is detailed. The base mode that has been installed was also updated and an inventory overlay was added. They also make sure that their buy rating is always maintained. It was first stated by the bank, that due to the growth of the lower market, the reductions came into place.

Apart from that another factor that was included was the about the development to emerging markets and the lower average selling price. The expectation is that it would drive the new lowered prices iPhone SE sales to increase. For Apple, on a brighter note, Goldman stated that for the entire sales of 2017 as per Goldman is low. It is also believed that the upgrades of iPhone 7 would be coincided with the pent up demand. The most significant risk is the Chinese demand environment; it also includes other factors like the pace of innovation, fluctuations of the foreign exchange, competition as well as the executing of the product cycle.