NEW YORK (Reuters) – Apple Inc’s APPL.O referred to a Goldman Sachs Group Inc’s (GS.(N) an analyst on a Friday, in a relatively rare public dust-up between a blue-chip Wall Street firm and its customers.
The Apple logo will be displayed at an event at its headquarters in Cupertino, California September 10, 2019. REUTERS/Stephen Lam
The controversy came after a Goldman Sachs analyst, Rod Hall’s criticism of Apple’s accounting practices before the tech giant’s new TV product, saying in a research note that it could result in a lower gross margin, and profit.
In response, Apple said that it does “not expect that the introduction of the Apple TV, including the accounting treatment of the department, to have a material impact on our financial results.”
A Goldman spokesman declined to comment, or to make the analyst available for an interview. Apple declined to comment on Goldman’s relationship with the outside of her reaction to the note.
While the research departments of major Wall Street banks have Chinese walls between those of different positions, and the rare public dispute was an awkward moment between the two companies.
Goldman Sachs has just signed up for more bond issues for Apple during the past ten years than any other investment bank, with a value of about $44 billion, according to financial data provider Refinitiv.
Goldman Sachs was advised by Apple in the field of mergers and acquisitions, as recently as two months ago, to guide it through a $1 billion deal to acquire the majority of the Intel-powered smartphone modem business, according to the Refinitiv.
And, just last month, the two have worked together on the launch of the two companies, first credit card — the Apple Card.
Each and every bank has a formal separate in the equity research and investment banking divisions, because of the laws that have been adopted in the beginning of the year 2000, that focuses on the protection of the independence of equity analysts and investment bankers, who often are covering the same companies, with different agendas.
For Corporate clients, mostly related to the independence of the research. If they don’t do that, it gets a lot of attention.
In May of last year, Tesla Chief Executive, Elon Musk, declined to respond to questions from analysts regarding the company’s capital requirements, and the call of the questions “boring” and “not cool” during a conference call concerning its performance. Later on, he said, several analysts have direct, negative phone calls.
At the beginning of the fiscal year, Apple have changed where it is very good for the value and the cost of the free services, like Apple Maps and move on to the services segment of the industry. This is included in the products.
In its note, Goldman s, Hall said that Apple is likely to get the treatment from the TV subscriptions, in a similar manner, by accounting for it as a discount on the bundle, a toll-free service is connected to a piece of hardware you purchase. Hall said that it would lead to Apple’s investors, the average selling price for iPhones and other Apple devices, but with the rapid growth in the services sector.
A lot of Apple investors have come to focus on the growth in the services segment and the global smart phone market has slowed, with Apple’s shares will rise this year, despite the year-over-year decline in the iPhone sales for the last two quarters of this year.
Reporting By Elizabeth Dilts in New York, and by Stephen Nellis in San Francisco; Additional reporting by Greg Roumeliotis in New York; Editing by Daniel Wallis