Ask Matt: Has Apple and the iPhone peaked?

Q: Has Apple peaked?

A: Apple (AAPL) is showing the danger of being a one-trick pony when everyone already owns a pony.

The company’s reliance on the smartphone, which is now a mature and saturated market in the developed world, is starting to create a growth problem for Apple. Breaking through will be a challenge, reminding investors Apple’s fundamentals and stock price have peaked.

The gadget maker’s revenue during the September quarter, even after the launch of a new smartphone, fell 9% to $46.9 billion and net income fell 19% to $9 billion.

Apple to help viewers discover TV shows through an app

Apple couldn’t lift its bottom line even as its No. 1 rival Samsung reeled from an imploding phone scandal. Apple sold 5% fewer smartphones during the quarter than a year earlier.

Apple needs innovation. Its tablet unit sales fell 6% in the quarter and computer sales dropped 14%. Apple bulls point out that Apple shares are up more than 12% this year to $118.25, topping the roughly 5% gain by the Standard & Poor’s 500. But shares are still down 11% from their all-time high of $132 in 2015.

Even after the 2016 rally, Apple is still in a correction. Analysts are bullish. But they project the stock will be worth $128 a share in 18 months, still less than the peak.