Apple no longer a safe bet for investors?

News Richard Goodwin 11:23, 8 Nov 2012

Uncertainty over the iPhone 5’s production and increased competition in the mobile space has resulted in some investors deeming Apple no longer a safe bet

Uncertainty over the iPhone 5’s supply chain combined with increased competition in the tablet space has resulted in many Wall Street investors losing faith in Apple’s once ineffable brand. 

Does this mean Apple’s honeymoon period as the go-to company for investors is over?

Many investors are questioning whether Apple is still the innovator it once was despite the recent launch of the iPad Mini and excellent sales figures for its iPhone 5. 

‘Long a mainstay of many fund portfolios, Apple on Wednesday lost 20 per cent - $130 billion of its market value - since hitting a record high in September,’ reports Reuters.

Tim Cook’s leadership is also being called into question after the surprise departure of Jobs’ protégé, Scott Forstall – the man responsible for iOS. 

One ex-Apple exec lamented in a guest piece published by The Guardian earlier this week that he feared Apple’s days as an innovator seem to now be behind it, citing the lack of innovation present within the iPhone 5 as his main root of concern. 

Shares of Apple, whose latest quarterly results failed to meet Wall Street's lofty expectations, slid as much as 4.6 per cent to a low of $555.75 before ending the day down 3.8 per cent at $558.0019, reports Reuters.

Apple is losing ground to the likes of Amazon and Samsung in the tablet space as well, which is also cause for concern. The iPad, once a dominant force in the space, now accounts for just 50 per cent of the market. 

Samsung increased its presence in the tablet market by almost double in Q3 to 18.4 per cent, according to IDC. 

Then there’s the issue of Microsoft – now a true player in both the smartphone and tablet space. The jury’s still out on Windows Phone 8, Windows 8 and the company’s own-brand Surface RT tablet but Microsoft’s renewed attack on the mobile space cannot be ignored. 

In light of the uncertainty, fund managers say investors may stop using Apple as a safe haven to park cash in a volatile market, claimed the report. 

Is this the beginning of the end for Apple? Not likely, but what’s clear is that it’s not just consumers that are growing tired of Apple’s safely-safely approach to design, product, and innovation. 

It’s time to turn up the heat once again, Apple. 

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