A softening global economy is also a headwind for Apple. On Monday, Canaccord lowered its iPhone and iPad sales "due to softer sales expectations in international markets," especially recession battered Europe.
"While order reductions to iPhone suppliers are not unusual this time of year, we believe reduced iPhone 5 orders for the March quarter could also indicate an earlier launch of new iPhone products in the June quarter," Canaccord analyst Michael Walkley said, as he cut Apple's price target to $750 from $800.
"Despite our slightly lowered estimates, we believe Apple's industry- leading software ecosystem and integrated hardware experience will result in a strong multi-year product cycle," Walkley added.
Not long ago, Apple towered head and shoulders above a landscape filled with would be competitors, with every product getting a rapturous reception from customers who would wait in line -- sometimes for days -- to get its latest offering.
Now, as the digital wars between tablet and smartphone makers intensify, Apple almost always gets mentioned in the same breath as Samsung, the Korean technology upstart whose phone offerings threaten the iPhone's dominance.
Samsung's Galaxy has overtaken the iPhone in market share, and Google's Android software has caught on with tech savvy consumers. As a result, some analysts to wonder if Apple can successfully defend its popularity,and keep up with competitors who are equally as nimble and innovative. (Read more: Two Key Reasons Why Apple is Getting Crushed.)
"The sentiment is obviously is very negative," said Brian Marshall, senior analyst at ISI Group, who nonetheless retains a buy rating on Apple's stock, and is bullish overall about the tech company's long-term profitability.
"Clearly from a mechanics perspective, Apple has the most embedded capital gains in it out of all the stock out there," he said, which makes it susceptible to selling by investors who fear the "fiscal cliff" could result in higher capital gains taxes next year.
"People want to take some chips off the table. But all that stuff is not related to [Apple's] fundamentals, those are solid."