Apple Inc. (AAPL) Taps a Fresh Low. How Bad Could It Be?

How bad could it be?
In Bachman’s view, Apple “absolutely” needs to expand the iPhone both down-market into the more affordable mid-range segment as well as up-market with a larger screen to address the growing phablet trend. Bachman adds, “We think Apple needs to and will do both.” My thoughts exactly.

Overall, Bachman is still sticking with his “outperform” rating and $580 price target, which makes the sell-off today seem a little unwarranted. While the analyst is addressing some very legitimate risks facing the company, we’re still talking about over 33% upside from current levels if his target comes to fruition.

Even without these product catalysts, Apple still owns developed smartphone markets like the U.S. and Japan, and from a global perspective the iPhone is still crushing the Galaxy S III. Even the previous generation iPhone 4S (3.5-inch display) outsold the newest Galaxy S III (4.8-inch display) worldwide in the fourth quarter. It’s undoubtedly true that Apple needs to broaden its iPhone horizons, and the sooner it does this the better, but the actual data shows that the situation is not nearly as dire as what investors are pricing in right now.

The article Apple Taps a Fresh Low. How Bad Could It Be? originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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