Zabitsky's Bearish Apple Thesis Would See Apple Trading at $470 in Short-Term, Longer-Term $270

Earlier on CNBC, equity analyst Ed Zabitsky of ACI Research appeared to give his investment thesis on Apple

. Zabitsky's call is notable as he has one of the only bearish outlooks on the stock in the industry, and his price target ($270) is currently less than one half of Apple's trading value. Zabitsky stated that investors would not see $270 any time soon, but that inevitable margin erosion would eventually cause the stock to trade significantly lower. He was bullish on Samsung's Galaxy 3 (set to launch in early May), stating that Apple's previous quarter was an aberration, and that Samsung had regained the lead as the world's largest smartphone maker. Zabitsky stated that he had a short-term price target of $470 on Apple. He arrived at that figure because of the margin decline Apple was currently seeing with its iPad, noting that the costs of producing an iPad had recently climbed by $30. Longer-term, he projected this margin decline out to Apple's iPhone. Zabitsky suggested that Apple, with its high costs, was making an enemy out of the wireless providers. He stated that Microsoft

was receiving an unusual amount of support from providers for its Windows phones, as providers are eager to weaken Apple and drive down subsidy costs. Shares of Apple are currently trading near $590, up just slightly on the current session.