In a note Monday, Citi reiterated its "hold" rating and said it has again lowered its already below consensus estimates for Apple. BMO also cut its price target on Apple from $480 to $440. Just last Wednesday it revised it price target from $560 to $480.
(On CNBC's "Squawk Box" this earnings season, we've been asking viewers and users to test their forecasting skills on whether companies will meet, beat, or miss Wall Street expectations. How will Apple fare? Vote now in our "Armchair Analysts" poll on the website or on the "Squawk" Facebook page.)
Apple's stock was trading below $400 Monday, far from its all-time high of $705 last September when some analysts made calls that the stock would surge to $1,000.
(Read More: How Low Can Apple Go? Let's Just Say 'Quite a Bit' )
But, there's no reason the stock should have traded that high in the first place, said AlphaOne Capital Markets' Dan Niles.
"The question is not why is the stock going down, but why did stock go up in the June quarter anyways? Then they missed the September quarter and people didn't care either. It took until the December quarter when they missed for people to care," Niles said. "It's like stock market in 2007, why is it going up? It's the same thing with Apple: Why did it go up in the first place?"
Analysts who predicted the stock would surge to $1,000 were wrong last September and they are wrong now if they think Apple's stock price will return to its highs anytime soon because the company is suffering from a flawed business strategy that it refuses to fix, Niles said.
Apple's approach to business is too narrow-minded, causing it to lose out to competition from companies like Samsung, Niles said. Apple may still capture more of the smartphone profits, but its business strategy of focusing on the high-end market isn't going to work forever as smartphone adoption continues to grow in developing nations, Niles said.
(Read More: What'll Boost Apple, Google: Gillis)
Unlike some other analysts, Niles said it is unlikely that Apple is on the verge of releasing a lower-cost smartphone and it is very unlikely it will launch iPhones with different display sizes, which the market shows a strong demand for, he said.
"Short term, there will be some excitement around Apple when it launches its TV, so you are going to have a little bit of a run. But for the long term, they just have to compete. They have to compete with a range of products in a range of different price points," Niles said.
Chowdhry also said a low-cost iPhone is unlikely, but added that that's actually good for Apple because staying at the higher-end of the market gives its products more value.
"Certain things have value because they are aspirational and are difficult to get," Chowdhry said. "You don't want to be another Dell. Think of it, have you seen anyone bragging that they have a Dell computer? It's not good anymore."
Chowdhry said that while he doesn't see a low-cost iPhone on the horizon, he does see the company launching an iPhone with a bendable screen and said he expects a TV launch before the end of this year, which will also spur growth. Beyond that, Apple will continue to unveil newly developed products that will continue to spur its growth, he said.
"The problem is not competition or financial. The problem is customers have very high expectations from them, and rightly so, because Apple is the only company that has transformed our lives," he said. "Remember, we cannot underestimate Apple. People are rightly expecting a similar product, and I think they will deliver."