Money Matters - Simplified

Is Apple losing its sheen?

Apple Inc. Apple Inc. losing its sheen?

Tech giant Apple might still be ruling the people's hearts with its iPad Mini and iPhone 5 but the recent dip in the value of its shares suggests an apparent vulnerability to the competition presented by its competitors and a dearth of innovation.

In the past two months Apple's shares have witnessed an alarming 20 per cent fall from it's all time high. The tech behemoth's shares, which touched a promising level of above $700 just two months back, limped to an almost 20 per cent lower value of $547.06 on Friday.

The continuous slump in the shares value has made everyone think that Apple is on the way to losing its dominance and signature charm over the consumers. What are the hurdles which are blocking it's growth journey? Is it competition that is getting on to the nerves of folks in charge of the company or is it the lack of innovation which was once Apple's trademark?

While major business analysts agree that both competition and decreased rate of technological innovation are the silent killers for Apple. All unanimously reckon that it seems to have lost its vision, strong management and its excellence driven commitment ever since the sad demise of its founder and former CEO Steve Jobs last year.

To top it all, Apple's management structure is indulging in some serious changes. Scott Forstall, the executive in charge of mobile software was ousted out after the maps disaster of the latest iOS. Another Apple executive, John Browett, also had to part ways with Apple. He was the head of its real-world shops.

Smart phones and tablets, both the segments which were once its strongest domain courtesy its unique OS and attractive features, are facing some stiff competition from other mobile and tablet makers. Android has reportedly made a big dent in its share in the international market. (Read: Android tablets making dent)

All these factors have not only weakened the investors' faith in the market lead, but have also jeopardized the company's future prospective.

Trip Chowdhry, an analyst with Global Equities Research says, "Investors are confused and have lost faith in Apple management. Apple today is not as customer centric as it used to be, and the rate of innovation is declining when the rate of innovation of competitors has dramatically risen."

While many are fretting over Apple's stock price situation, others say that it's very temporary and doesn't deserve too much thinking over.

Brian White, an analyst at Topeka Capital Markets, said, "The sell-off in Apple's stock in recent weeks has spooked investors but this correction is similar to the three others experienced over the past 13 months, all of which proved to be attractive buying opportunities."