Apple has sour reaction to Goldman Sachs' analyst note

Apple struck out at a Goldman Sachs Group Inc analyst on Friday in a relatively rare public dust-up between a blue chip Wall Street firm and its client.

The disagreement came after Goldman Sachs analyst Rod Hall criticised Apple’s accounting methods for the tech giant’s new TV+ product, saying in a research note that it may result in lower gross margins and profits.

In response, Apple said it does “not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results.”

A Goldman spokeswoman declined to comment or to make the analyst available for interview. Apple also declined to comment on the Goldman relationship beyond its comment on the note.

The rare public dispute is an awkward moment between the two companies.

Goldman Sachs has underwritten more bond issuances for Apple in the last decade than any other investment bank, worth some $44 billion, according to financial data provider Refinitiv.

Just last month, the two worked together to launch both companies’ first credit card, the Apple Card.

In a similar story in May last year, Tesla Chief Executive Elon Musk refused to answer questions from analysts about the company’s capital requirements, calling the questions “boring” and “not cool” during a conference call to discuss Tesla’s performance. He later criticised several analysts directly for negative calls.

Many Apple investors have come to focus on growth in the services segment as the global smart phone market has stagnated, with Apple shares rising this year despite year over year declines in iPhone sales for its most recent two quarters.