Citi's Glen Yeung latest note to investors takes a bearish view of
Apple's stock; however, Yeung does suggest that an iWatch is
'increasingly likely' for 2013.

"While we had expected to hear
optimism around Apple's forthcoming product refreshes in this round of
checks, we were surprised at the skepticism at many points in the supply
chain," says Yeung.

Most Apple suppliers "...expect negative
revisions to Apple's 2H13 iPhone build forecast that, if realized, could
result in flattish y/y unit growth (including low-cost iPhone). A
modest delay in iPhone 5S production (underscoring our concerns about
Apple's ability to execute) is contributing to this view. Meanwhile, a
push-out of iPad Mini Retina leaves emphasis on the lower-priced Mini 2,
pressuring ASPs and underscoring our concerns about Apple's GM. To be
sure, the supply chain is ready for iWatch production, making it look
increasingly likely for 2H13, although iTV remains elusive (we do not
expect meaningful revenue contribution for iWatch in 2013). In light of
our findings, we find it difficult to side with the bulls at this time
and, despite valuation, we expect Apple to remain in a range around our
$430 PT."

FORTUNE notes that when it examined analyst's accuracy
on forecasting Apple's quarterly results, Yeung scored second to last,
61 out of 62.

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