What Will It Take For Apple to Hit $888? 10:42 PM ET Thu, 11 April 2013

Adding to worries, Apple supplier Cirrus Logic plunged nearly 15 percent after the audio chipmaker estimated fourth-quarter revenue below Wall Street projections, and first-quarter revenue forecast also fell short of expectations.

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Other Apple supplier, including Qualcomm, Avago Technologies and Skyworks, also traded sharply in negative territory.

Most recently, widely followed Apple analyst Gene Munster of Piper Jaffray cut his price target to $688 from $767 based on the belief that the company will release a lower-priced iPhone, which will cannibalize higher-priced iPhone sales.

Munster also expects Apple's earnings to be weak, and the guidance for the June quarter is going to be worse than expected. Still, he maintained his "overweight" rating on the stock. Apple is scheduled to post quarterly results next Tuesday.

Apple shares have vastly underperformed the broader market amid revenue concerns, plunging almost 25 percent year-to-date against the S&P 500's 9 percent rally. Apple shares have dropped a staggering 40 percent and wiped out more than $250 billion in market cap since hitting an all-time high of $705 a share in September when the iPhone 5 went on sale.

"Clearly, it's been a rough six months for the stock," Parker wrote. "Sentiment has gone from bad to worse as the overhang from the disappointing December quarter call has been compounded by a steady stream of negative industry supply chain checks."

Still, Parker said he continues to like Apple as a "storage" company and has a "buy" rating on the stock with a $540 price target.

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