Goldman Sachs Lowers 2014 Tablet Growth Forecast (AAPL)
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Goldman Sachs lowered its 2014 tablet growth forecast to 15.4% from 20.4%. 2015 estimates were lowered to 14.6% from 19.6%. There was no change to Apple's (Nasdaq: AAPL) estimates, but analyst Bill Shope is watching for growth in the second half of 2014.
"First-quarter tablet data came in well below our forecast, with unit growth of just 1.0% yoy coming in well below our 22.1% estimate. While disappointing, 1Q2014 faced a difficult compare against 1Q2013, which experienced remarkable 111% annual unit growth (largely on channel fill). Nevertheless, this market is showing signs of maturity, and if next-generation tablets from Apple and others don’t reignite growth in 2H, there may be further risk to our growth forecast. For tablets, we now expect 2014 unit growth of 15.4%, down from 20.4% previously, and 2015 unit growth of 14.6%, down from 19.6% previously," said Shope.
"We have already factored in weaker iPad sales into our Apple forecast following the company’s latest earnings release, and we are not revising estimates for any of our other companies at this time," he added.
2014 PC forecasts were adjusted to reflect a decline of 3.7%, up from 4%. 2015 shipments are expected to decline 0.8% vs 1.2% prior.
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