Barclays said that Apple IncThe share price could fall by more than 10 per cent, citing concerns about valuations and the risk of expecting too much from 5G iPhone.

Apple Inc's share price is up more than 20 per cent from its low in early November and "the gap between fundamentals and valuations has widened further", Barclays wrote.

Analyst Tim Long wrote that Apple Inc's current valuation is at an all-time high, "although there has been little growth in operating profit, a decline in gross profit margin and operating margin and a loss of market share in the core business". While many people are excited about Apple Inc's services business and the potential of wearables, "We remain cautious about the high expectations of the market for the 5G iPhone cycle". Apple Inc's "very high" valuation digests the expectations of the "very successful" iPhone 5G cycle, which brings more downside risks than upside potential.

Barclays rates Apple Inc in line with the broader market, with a target share price of $116.

The target price means that there is about 11% room to fall compared with Apple Inc's recent closing price.

Apple Inc has 30 buy ratings, 11 hold ratings and 3 sell ratings, according to Bloomberg data; the average target share price is $131.