Goldman Sachs Group, Inc.: Apple Inc. (AAPL.US) recent stock price weakness brings a good buying opportunity, reiterating a "buy" rating.

The recent weakness in the stock price of Goldman Sachs Group, Inc. and Apple Inc. (AAPL.US) - which has fallen for seven consecutive weeks - has provided a "buying opportunity" for the iPhone maker ahead of its quarterly earnings report. Goldman Sachs Group, Inc. analyst Michael Ng expects Apple Inc. to announce earnings per share of $2.66 for the quarter, with iPhone revenue expected to increase by 13% year-on-year, and shipments to increase by 5%, with the Chinese market showing a growth rate of up to 26%. Ng maintains a "buy" rating for Apple Inc. with a target price of $320. In a report to clients, Ng wrote, "Over the next two years, iPhone demand may benefit from the launch of the iPhone Fold (expected in the fall of 2026, with shipments of 4.5 million in fiscal year 2026 and 25.4 million in fiscal year 2027), the change to a semi-annual iPhone release cycle (iPhone 18 series and iPhone Air 2 release date postponed from fall 2026 to spring 2027), and software upgrades such as iOS and Siri 2.0. Although App Store spending slowed down in the first quarter of fiscal year 2026 to a 7% year-on-year growth, service revenue growth (expected by Goldman Sachs Group, Inc. to grow by 14%) should be supported by the momentum in other categories (such as TAC, iCloud+, AppleCare+), and new advertising formats in the App Store are expected to bring further benefits in fiscal year 2026." Ng added that Apple Inc.'s pricing and product mix growth, as well as its continuous transition to a service-oriented business, should help improve gross margins, even with rising memory costs. In addition, the company's partnership with Alphabet Inc. Class C (GOOGL.US) in the Siri field and the continued demand for the iPhone should "demonstrate to the market that the iPhone will still be the preferred device for consumers to access new artificial intelligence tools, thereby eliminating competitive disadvantages."