Bernstein's Toni Sacconaghi Lays Out The Bull And Bear Case For Apple Going Forward

After a continuous decline since it released its earnings report, shares of Apple Inc. AAPL spiked up 2.6 percent on Monday on reports that the company might be releasing new products at an event scheduled in September.

Toni Sacconaghi, analyst at Sanford C. Bernstein, was on CNBC to discuss the bull and bear case for Apple going forward.

Bull Case

"The iPhone is doing very, very well right now," Sacconaghi began. "I think the question is, is it a little bit a victim of its own success. Last year in the December quarter, Apple sold nearly 75 million iPhones, it was tremendous growth. The new large screen phones really resonated with customers. And so, I think investors are worried about can Apple sustain that level of growth? Can they actually continue to grow year-over-year versus a very tough comparison?"

Sacconaghi continued, "And that's why the stock has been weak because the market has been fearful that over the past year Apple has effectively pulled in users and that's why it has gained so much share and that's what the market has been worried about. But...we think, there's lots of opportunities for Apple to continue to gain share."

Bear Case

On the bear case for Apple going forward, Sacconaghi said, "I think the bear case would be as follows: that Apple had a really great phone that consumers were waiting on which was the larger screen. They had never had that before, their competitors had. And so, as soon as that came out you had a groundswell of people come in and buy the phone. People who not only would have bought it this year, but potentially people who would have bought it next year."

"So effectively pulled forward demand...and that does two things. It sets up an extremely difficult compare and then secondly that leads less people to buy the phone next year. So, that's the worry," Sacconaghi said.