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At one time it seemed Apple (NASDAQ:AAPL) could do no wrong; Time Magazine named the first iPhone the invention of the year in 2007, its 2010 release of the iPad shook the personal computer upside down, and last September its stock price almost brushed $700. But, even though the iPhone grabbed its largest share of the U.S. market ever in the September through November quarter, times are changing at Apple. Shares of the iPhone maker are now trading in the low $400s, and even several analysts are putting out bearish assessments of the company.
Citigroup analyst Glen Yeung put forward an argument on Wednesday that the iPhone and the iPad are running out of momentum. In a research note circulated to investors, he explained that end-user demand for the devices is declining, and he pointed towards a recent reduction in component orders from Apple suppliers as the basis of his analysis.
“In conducting our regular field work with the hardware supply chain, we again find evidence of reduced demand to Apple’s suppliers for iPhone 5 related components,” Yeung wrote in his note, according to CNET. “While production does not directly translate to sales (for example, we estimate Apple finished 1Q13 (Dec) with [around] 10M iPhone units in inventory), we suspect this is an indication of softer demand for iPhone 5 and iPhone 4S.”
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