Mystery: Why is Apple having such a bad week?

Published Fri, Oct 2 20156:00 AM EDT

Why is Apple underperforming so much after it announced seemingly positive first weekend iPhone sales? That is the big question asked by many investors with Apple shares down 4.5 percent week to date compared to a flat market. "Sales for iPhone 6S and iPhone 6S Plus have been phenomenal, blowing past any previous first weekend sales results in Apple's history," said Tim Cook, the tech giant's CEO in the Monday morning press release. The company reported it sold more than 13 million of the new iPhones during the first three days after launch compared to 10 million last year. CNBC Pro asked several Apple experts and traders to find out why the company is selling off. Here is what they said… There was skepticism the 30 percent year-over-year iPhone sales growth was an accurate portrayal of underlying demand. "The inclusion of China in the launch markets clouds the comparison," wrote Jeffrey Kvaal of Nomura Research in a note to clients Monday. "We do not believe Apple could have delivered a 30 percent uptick in first weekend volumes without a healthy contribution from China." China represented 27 percent of Apple's sales in the June quarter. This year's first weekend 13 million unit sales included China, but the Asian country wasn't included in last year's 10 million number as it didn't launch there until mid-October in 2014. Moreover, consumers had 13 days to preorder iPhones before launch day this year versus seven preorder days in 2014, further clouding the comparison. Other investors are worried about the longer-term growth of the iPhone 6S cycle. "There are massive worries on the Street about the legs to this iPhone 6S product cycle. All eyes are now focused on a 75 million bogey for iPhone shipments in the December quarter," Daniel Ives from FBR Capital Markets wrote in an email. Some are worried that Apple entering the car market may hurt profit margins in the coming years. Read More Top analyst: SanDisk set to rebound by 40% "We believe investors are concerned about structural iPhone deceleration, especially in China, even if near-term results may indicate stable demand. ... Investors may also be concerned about Apple's potential entry into the electric car market, at potentially lower profit margins compared to iPhone," Jefferies' Sundeep Bajikar stated in an email. FBR's Ives also noted how investor sentiment has deteriorated and every datapoint is being seen as bearish. He expects it will stay this way until the company reports September quarter earnings on Oct. 27. "Right now the bears are ruling the day as every data point is being construed negative/not sustainable and thus has created a black cloud over Apple's stock. It's a major 'prove me' stock here," Ives said. "We view this as our best large-cap growth name and believe the tide will start to turn positive with September results/December guidance." Traders believe Apple is being used as a source of liquidity in a difficult environment for growth fund managers. "Apple is dead money for the near term. It has been used as a source of liquidity. If you gotten hammered in biotech and other illiquid names lately and needed to raise funds, you sell Apple to raise cash as you don't want to sell stocks that got demolished and can have a big relief rally within days," said David Seaburg, head of equity sales trading at Cowen and Co. Read More As bull fades, consumer stocks keep marching on "It's always a safe bet that widely held stocks are used for a source of funds," said Steve Grasso, director of institutional sales at Stuart Frankel & Co. "Now add to it that Apple has run out of momentum indicated by its stock price trading below its shorter-term moving averages and that makes it the poster child for stocks that are being used as an ATM."

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Why is Apple underperforming so much after it announced seemingly positive first weekend iPhone sales?

That is the big question asked by many investors with Apple shares down 4.5 percent week to date compared to a flat market.

"Sales for iPhone 6S and iPhone 6S Plus have been phenomenal, blowing past any previous first weekend sales results in Apple's history," said Tim Cook, the tech giant's CEO in the Monday morning press release.

The company reported it sold more than 13 million of the new iPhones during the first three days after launch compared to 10 million last year.

CNBC Pro asked several Apple experts and traders to find out why the company is selling off. Here is what they said…