By Elizabeth Dilts and Stephen Nellis
<p class = "Canvas Atomic Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "Text" Content = "NEW YORK (Reuters) – Apple Inc
The controversy arose after Goldman Sachs analyst Rod Hall criticized Apple's accounting policies for the technology giant's new TV + product and said in a research report that this could lead to lower gross margins and profits.
Apple responded "It is not expected that Apple TV +, including the service's accounting, will have a significant impact on our financial results."
A Goldman spokeswoman declined to comment or provide the analyst for an interview. Apple also declined to comment on the note's comment on the Goldman relationship.
While research departments at large Wall Street banks have Chinese walls separating them from other functions, the rare public dispute is an unpleasant moment between the two companies.  Goldman Sachs has issued more bonds to Apple over the past decade than any other investment bank. Goldman Sachs advised Apple two months ago on mergers and acquisitions Just a month ago, Refinitive said it was worth $ 1 billion to take over most of Intel's smartphone modem business.
And just last month, the two worked together to get the first credit card from both companies – the Apple Card.  Each bank formally separates its Equity Research and Investment Bank departments based on laws passed in the early 2000s to protect the independence of the equity sector ty analysts of investment bankers who often cover the same companies with different agendas.
Corporate clients generally respect the independence of the research department. If this is not the case, it gets a lot of attention.
In May of last year, Tesla boss Elon Musk refused to answer analyst questions about the company's capital requirements, while calling the questions "boring" and "not cool" a teleconference discussing Tesla's performance. Later, he criticized several analysts directly for negative calls.
At the beginning of the fiscal year, Apple changed its approach to the value and cost of free services – such as Apple Maps – and moved it into the service segment. Previously, this was reported under the individual products.
In its note, Goldman's Hall said that Apple is likely to treat TV + subscriptions in a similar way by evaluating this as a reduced package of a free service associated with a hardware purchase. Hall said that this would cause Apple's investors to see lower average selling prices for iPhones and other Apple devices, but faster growth in the company's services segment.
Many Apple investors have stagnated on growth in the services segment as a global market for smartphones, and Apple shares rose this year, though iPhone sales fell in the last two quarters year on year.
(Reporting by Elizabeth Dilts of New York and Stephen Nellis of San Francisco; Additional Reporting by Greg Roumeliotis of New York; Editing by Daniel Wallis)