Should Investors Be Worried About Apple?

Apple AAPL shares have been beaten down over the past month as the company has struggled amid concerns in China and worries about the firm's iPhone sales. Over the past 30 days, Apple's stock has declined 18.46 percent to trade at $96.45, the first time in over a year the shares have traded below $100. What Happened? With Apple's earnings report coming up at the end of January, many investors are becoming nervous due to predictions that the company's iPhone unit sales declined for the first time ever in the fourth quarter. Several analysts have said they expect to see a drop and many of the company's suppliers have confirmed the negativity. That, coupled with overarching concerns about China, has weighed on Apple's stock prices. What If iPhone Sales Declined? In January when Apple reports its earnings, investors will know once and for all whether or not the firm's unit sales faltered. While many see the first ever iPhone unit sales decline as an armageddon for the company, others say the market is overreacting. While it's true that unit deceleration is never a good thing, Apple's iPhone business is still solid and some say that lackluster unit sales could be the firm's iPhone business maturing. Instead, investors should be focused on Apple's margins and whether or not the firm's fundamentals are strong enough to support its unit volumes. Contrarians Say Buy While the broader market is dumping Apple shares for fear that the Fruit is struggling, contrarians are buying shares of the company while they are low. Apple's impressive cash flow is likely to keep the company repurchasing shares, providing a boost to earnings per share and keeping shareholders happy. For those who still believe in Apple's staying power as a company, now could be an excellent time to buy.