5 Risks to Watch at Apple, According to Bank of America

Apple Inc. AAPL was all over the map yesterday as the company held its much-anticipated announcement of the Apple Watch. The company also launched a new MacBook, while upgrading the MacBook Air and Pro. Apple did not announce any iPad upgrades, though analysts at Bank of America Merrill Lynch believe that the larger, 12.9" iPad should be available later this year.

In total, BofA took those announcements in stride, reiterating a $140 price objective on the stock. Alongside that price target, BofA updated its view of risks that could undermine its price objective. Here are BofA's five risks:

1. Apple's exposure, reliance on the iPhone upgrade cycle.
2. Commoditization in the smartphone market.
3. Increased competition in the tablet market.
4. Managing to beat and raise EPS expectations.
5. Lower margins from "accelerating pace of product innovation."