Bond guru Jeffrey Gundlach says Apple shares will fall to $425

Jeffrey Gundlach, one of the world’s top bond gurus, has taken a big swipe at Apple.

The bond fund manager is predicting that Apple’s stock, down more than 20% since Sept. 19, could fall as low as $425 a share.

Shares declined $22.20, or 3.8%, to $558 on Wednesday. Just a couple of months ago, analysts were predicting Apple’s stock could hit $800, possibly even $1,000, a share.

Gundlach, now chief executive of DoubleLine Capital, said in an interview with CNBC that he didn’t understand everyone’s “obsession” with Apple stock, which he began shorting in April.

“The product innovator, as I’ve said over and over again, isn’t there anymore,” he said.

He also criticized the company’s latest device, the 7.9-inch iPad mini, which began hitting store shelves Friday.

“I’m really struck by this mini iPad thing, as if that’s any kind of a product innovation,” he said. “Once you start just changing the size of your products, I really think you’re not exactly innovating. I’m wondering if you’re going to start coming out with the tutti-frutti iPad, where it comes out in different colors.”

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