The buzz over Apple's new product - the iPhone - and the recent pullback in the equity markets make investors feel encouraged about buying Apple stocks. But analysts warn: buying the stock now solely on the faith of this new product could come back to haunt investors' portfolio later in the year.

Apple plans to sell as much as 10 million units by the year 2008, a goal considered conservative. Analysts insist, however, that a closer look at the handset market may prove that such a goal may be too lofty even for a consumer electronics powerhouse like Apple.

The iPhone is considered a smart phone due to its high price and multifunction capabilities. Although smart phone sales increased by 42 percent since 2004, smart phone sales represent only 10 percent of the total number of handsets sold last year.

The way that the iPhone is only available through AT&T's Cingular Wireless service is also limiting for iPhone sales. Other factors that may not make the iPhone sell as well as planned are its high price, and the credibility of the competing smart phone makers such as Nokia, Palm and Motorola.

Analysts advice to avoid AppleÂ?s stock until it is certain that the iPhone will sustain a high level of growth.