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Apple seen losing its 'innovation magic' [Times of Oman](Times of Oman Via Acquire Media NewsEdge) New York: Apple, the world's most valuable technology company, has lost its edge among investors, according to the latest Bloomberg Global Poll. Hedge funds sold large stakes of the iPhone maker's stock in the first quarter, Apple shares are down 40 per cent from last year's high and the company paid higher interest rates for a recent bond sale than Microsoft in a PC trumps Mac moment. Now, 71 per cent of poll respondents say the Cupertino, California, company has lost its cachet as an industry innovator, which includes 28 per cent who say it is permanent and 43 per cent who say it may be a temporary hiccup. There are still true believers; 23 per cent said Apple remains the best in the business. Six per cent were unsure. "They've definitely lost their momentum," said Lionel Mellul, 43, head of the cash equity business at Sunrise Brokers in New York, a poll respondent. "It's still at the point where they might turn things around. They still have a strong brand." Chief Executive Officer Tim Cook said the company won't introduce a product to add to its innovations the iPod, iTunes, the iPhone and iPad until the US fall, one of Apple's longest stretches without a fresh gadget since at least 2000. Apple remains the most profitable technology company, generating $41.7 billion last year. In the global handset business, the iPhone accounts for 57 per cent of the industry's profits, according to Canaccord Genuity. Increased competition Many of Apple's major products are facing increased competition from Samsung's top-selling Galaxy phones, Amazon.com's Kindle tablet reader and Spotify's music service. "Apple is innovating around the same things which, in my mind, is not really innovating," said Gala Prada, 42, head of pension funds and portfolio manager for Fiatc Seguros in Barcelona, who answered the poll. "There are companies like Samsung which are taking the lead right now innovating in all kinds of consumer and electronics products which also make Apple, on a relative basis, look a little bit behind," Prada said. The popular perception had been "that Apple could do no wrong, the iPhone and iPad were the best, most innovative products on the market, and all competitors are struggling to keep up," said Michael Cumming, 35, a senior equity analyst with Scout Investments in Kansas City, Missouri. Shine off Investors have sent Apple's shares down almost 40 per cent from a September high closing price of $702.10 amid slowing sales and profit growth. The company last month reported its first quarterly profit decline in a decade and predicted the slide would continue in the current quarter. Hedge funds such as Tiger Global Management, founded by Chase Coleman, cut its stake by 790,000 shares, or $443.7 million including market losses, in the March period, according to a regulatory filing May 15. Appaloosa Management LP and Tudor Investment also sold major stakes. Apple also isn't getting the best interest rates in the debt market. The company paid higher interest rates for a record $17 billion bond sale than Microsoft, the world's biggest software maker, did a week earlier. Steve Dowling, a spokesman for Apple, declined to comment. (c) 2013 Muscat Press and Publishing House SAOC Provided by Syndigate.info an Albawaba.com company |