Sanford C. Bernstein analyst Toni Sacconaghi looked at Apple Inc.’s (NASDAQ: AAPL) latest sales numbers and thinks that the company may have an iPhone stock problem:

We believe the documents points to a meaningful amount of iPhone channel stock … that is negative in two ways: (1) it indicates end-user demand for iPhone is lower than many investors may think based on Apple’s sales figure; and (2) it points to slower iPhone sales in the current quarter, since much of that stock is likely to be drawn down.

Check out News.com’s coverage of the report for more details and insight.

Apple’s stock has been hit tough of late, and

that latest stock report underscores one of the reasons I wouldn’t buy Apple stock (I wouldn’t short it either): The company is 100% dependent on its continued ability to innovate and stay ahead of the competition with each new product introduction. Even a blockbuster hit can only carry the company for so distant.

Any investment in Apple is essentially a bet on the company’s ability to continue being an innovator. sign me crazy but whether I’m going to pay 6+ times book and 25 times earnings, I’d prefer a strong moat that doesn’t require continued brilliance.

Original post by Zac Bissonnette

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