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Apple Shares Underperforming as Deutsche Bank Cautious on Q1 Component Production

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Shares of Apple Inc. (NASDAQ: AAPL) are often analyzed in terms of the company's sales. Analyst Yasuo Nakane at Deutsche Bank, however, has concerns over another aspect of the business: component production.

In a research note from Friday morning, Nakane said component production for Apple devices in the first quarter of 2013 may be exposed to major adjustment risk. Supply-chain movements suggest iPhone production may fall more than 30 percent while iPad production may fall as well.

Nakane expects Japanese device and component makers to perform in line with guidance in the fourth quarter and sees a strong likelihood of “major shortfalls” in guidance for the first quarter of 2013.

While Apple shares currently have a value which is nearly 30 percent higher than January 2012, the stock has lost more than 20 percent over the last three months. This downward trend is disconcerting for a company with a huge public persona and intense pressure to perform. Many analysts retain higher price targets on AAPL, with some well over $1,000 a share.

Apple shares are down about 2.3 percent to $529.37 at last check.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2014Cantor FitzgeraldMaintainsBuy
Oct 2014BarclaysMaintainsOverweight
Oct 2014Morgan StanleyMaintainsOverweight

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