Goldman Sachs is telling clients that Apple's recent share price decline represents a buying opportunity. Analyst Michael Ng, in a note Tuesday, cited a roughly 5% year-to-date drop tied to commodity inflation and App Store concerns. The bank sees the dip as an attractive entry point ahead of a stronger iPhone cycle.

Goldman models first-quarter fiscal 2026 earnings at $2.66, aligning with consensus. It forecasts iPhone revenue growth of 13% year-over-year, driven by a 5% unit shipment increase and a 26% surge in China. Price and mix improvements are expected to add another 8% to growth, bolstering the investment case.

The bank expects robust iPhone demand for the next two years, supported by the upcoming iPhone Fold and a biannual launch cycle. Services revenue should rise 14%, aided by iCloud+, AppleCare+, and new App Store ad formats. Goldman believes Apple's AI partnership with Google Gemini reinforces its position as the primary consumer device for new AI tools.