3 Bearish Cases for Apple

The choppy journey of Apple’s (NASDAQ:AAPL) stock over the past month doesn’t exactly invoke calm in its investors. Some say the worst of the storm is over, but there are those for whom this is the beginning of the end.

Investing in Apple is serious business considering its high share price. On Monday, we gave five arguments that support buying the iPhone maker’s stock. Today, we offer three bearish opinions:

Disappointing Sales in Order?

Last week, Deutsche Bank’s Japan team issued some cautious comments about Apple’s performance, saying end-of-the-year sales had not been as strong as expected and that production of components and materials for its mobile products was exposed to adjustment risk. According to the research firm, Apple value chain movements suggested a declines in iPhone 5 sales figures, while the only product expected to continue favorably was the iPad mini.

“Although we view Japanese device and component makers as having performed in line with guidance in 4Q 2012, we see a strong likelihood of major shortfalls from guidance, except for iPad mini, in 1Q 2013, and are concerned about adverse effects on capacity utilization, sales, and profits,” the bank said. “Despite major benefits from yen depreciation vs the euro and US dollar, we plan to pay attention to undershooting key volume-basis demand.”

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