Goldman Sachs cut its price target for Apple stock to $124 from $136 in a note issued Thursday.
Simona Jankowski and her analyst team continue to rate Apple as a "buy," though, because Goldman's model "implies upside to consensus estimates."
Still, Goldman is less bullish on Apple than it had been, lowering its iPhone shipment estimates because of general pessimism about the smartphone market.
The note also details worries about the Chinese market, which it calls the "most significant new risk" to Apple. The analysts think Apple's iPhone market share could fall by 330 basis points, 0r 3.3%, in Greater China, which also includes Taiwan and Hong Kong.
Additionally, Goldman sounds the warning — echoing comments made by Tim Cook earlier this year — that iPhone prices may be falling because of greater penetration in emerging markets and Apple's new entry-level model:
We expect blended iPhone [average sales price] to decline 3%/3%/1% in FY16/FY17/FY18, primarily driven by a greater shift to emerging markets, where we expect a higher mix of lower-end SKUs such as the iPhone SE and its successors.
Shares of Apple are down less than a point in early trading on Thursday.
Here's a chart that shows how the average price for an iPhone has dipped recently:
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