While there is room for some incremental growth in emerging markets, the high-end of the smartphone market is saturated in the developed countries, leaving Apple ith limited growth opportunities, Hargreaves said.
But another reason Apple has seen a decline in the smartphone and tablet space is because the company simply has more competition, Porter Bibb, a technology venture capitalist, said Thursday on CNBC's "Halftime Report."
"The headlines earlier this week were Apple is losing market share in the tablet business, of course they will because they invented that product category and there are now a dozen competitors sharing the market," Bibb, the Mediatech Capital Partners managing partner, said. "But the market is growing over 50 percent a year. So there is plenty of room to go." (Read More: 'Beginning of a Bull Market' for Apple: Porter Bibb)
Apple competitors in the smartphone and tablet space include Microsoft, Samsung, Google and Amazon.
In fact, Samsung's Galaxy S3 smartphone trumped the iPhone in worldwide sales last quarter, bumping Apple's mobile device into second place for the first time in two years, according to Strategy Analytics.
Hargreaves, who prices Apple stock at $670 a year from now, said Apple is a buy at its current pricing, but the company needs "something new" besides its mobile devices to match its past growth.
Bibb though, said Apple is still the dominant company in the space and it will continue to grow. As for the drop in Apple's stock price, Bibb said it was "a reflection of the overall macroeconomic situation around the country and around the world," and that there is still room for growth despite competition.
"They are the market leader. They are going to have less share of a bigger growing market, and there's no question that they know what they are doing," Bibb said. "It's just the beginning of a bull market for these portable devices."