Apple has fallen: Share price drops on slowdown wiping $46bn from market cap as Goldman Sachs removes from "conviction" list

Lynsey Barber
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Goldman's not angry, it's just disappointed (Source: Getty)

Shares in Apple fell more than eight per cent as markets opened in New York after the company reporting a fall in both revenue and iPhone sales.

Around $46bn (£31.6bn) was wiped from its value as a result of worse than expected results.

The fall in revenue to $50bn – around $2bn short of estimates – for the second quarter is the first decline since 2003 in the tech giants seemingly ever upwards trajectory.

Read more: The morning after the night before: UK Apple suppliers feel the crunch

It's also the first time iPhone sales have fallen since the game-changing device launched in 2007.

Apple Apple | mobile image

Several analysts have cut their price targets for the stock.

Read more: What you need to know about Apple (other than that revenue drop)

Goldman Sachs removed Apple from its so-called conviction list, its pick of star stocks to which it was added last year with an outlook that it could reach dizzying new heights. The firm said in a note yesterday that it was "disappointed".

"We are disappointed by Apple’s quarter and guidance, as it reflects a much weaker iPhone 6s product cycle than we had anticipated, with most of the negative surprise vs. our expectations coming from China. As such, we expect the shares to be weak in the near term, until the market gets comfortable around improving trends with the iPhone 7 product cycle. That said, we do not view the quarter as thesis-changing longer term, and maintain our Buy rating."

Meanwhile BTIG Research said: "As we noted in our recent note that cut estimates, it’s still too early to tell whether the next iPhone can return Apple to revenue growth."

It added: "We remain concerned about a possible structural change in the replacement cycle of high-end smartphone buyers."

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