Goldman Sticks With Apple (AAPL) Buy Rating Despite Early-2026 Weakness

Core Viewpoint - Apple Inc. is viewed as a strong investment opportunity despite a 5% year-to-date decline, with analysts highlighting the potential for growth driven by iPhone demand and services revenue [1][2]. Group 1: iPhone Performance and Projections - iPhone revenue is expected to grow by 9% in both fiscal 2026 and 2027, with a projected earnings per share of $2.66 for the first quarter of fiscal 2026 [3]. - The first quarter of fiscal 2026 is anticipated to see a 13% year-over-year increase in iPhone revenue, supported by a 5% growth in units sold, including a notable 26% growth in China [3]. - Future iPhone demand is expected to benefit from the introduction of a foldable iPhone in late 2026, a shift to a biannual launch cycle, and new software upgrades [4]. Group 2: Services Revenue and Growth Drivers - Although App Store spending growth has slowed to 7% year-over-year, overall Services revenue is forecasted to grow by 14%, driven by categories like iCloud+ and AppleCare+ [5]. - New advertising formats in the App Store are expected to provide additional growth momentum in fiscal 2026 [5]. Group 3: Gross Margins and Competitive Position - Product price/mix growth and a continued shift towards Services are likely to support gross margins, helping to mitigate potential challenges from memory cost inflation [6]. - Apple's partnership with Google Gemini for Siri and ongoing iPhone demand growth are expected to reinforce its position as a leading consumer device for accessing AI tools [7].