Analyst: Here’s Apple’s Main Problem

apple-ipad-caseApple (NASDAQ:AAPL) may register its first earnings-per-share decline in a decade this quarter despite an expected growth in revenue because a compressed product cycle and squeezed profit margins have come to haunt the company, BTIG analyst Walter Piecyk said on Monday. According to Piecyk, Apple’s attempts to shorten its product cycle have misfired and instead led to its infamous supply chain constraints and a drop in the stock price.

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Piecyk chose to maintain his Neutral rating on the iPhone maker’s stock, saying that while concerns regarding the company’s future were currently discounted because of the lowered share price, he was still wary of moving away from the sidelines.

“We are once again faced with a similar situation that we encountered when we downgraded Apple in April of last year,” Piecyk wrote, according to Barron’s. “The company was about to report a very strong quarter on the back of a successful iPhone launch in China but new risks were emerging, including operator push backs on subsidies and a possible June quarter miss, which drove our decision to downgrade the stock to Neutral…

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