Apple Inc (AAPL) – A Lucrative Dilemma for Investors

Year 2014 seems to have turned out quite well for Apple Inc (NASDAQ:AAPL) as also investors who have shown long standing faith in it. What could be a better proof of this that the overall rise of 42.46% in the share value of the stock since the beginning of 2014? Shares of the company closed at an all-time high of $114.18 after Friday’s trading session and this was subsequent to the dividend of $2.9 billion distributed to shareholders.

CNBC raised a debate on the suitability of keeping Apple Inc (NASDAQ:AAPL)’s stock long-term in the portfolio and opinions to this effect were taken from Granite Invest Advisor’s Timothy Lesko and an analyst from Dohmen Capital Research named Bert Dohmen. Amongst them, Bert Dohmen provided a bullish outlook for the stock for the short term based on its sound engineering as also its policy of buying back the old stock.

Apple (AAPL)

However, he referred to the stock as being bearish for the long term owing to the sizeable decline in its sales figure the world over. There might have been a time when Apple Inc (NASDAQ:AAPL)’s products were sought after and sold like hot cakes but currently the company seems to be losing market share like crazy, a 30-40% decline in iPad sales being a worthy indicator. Timothy Lesko went on to point out that the company had a way of buckling down under the pressure of shareholders and for him this was reason enough to be skeptic in the long-term.

Ever since its launch in 2010, iPad has been causing the company’s revenue to soar and has been largely responsible for uprooting competition from the market. Microsoft and Intel turned out to be some of the biggest losers with Qualcomm not very far behind. Courtesy of having ruled the roost for the last couple of years, it is just a matter of time before Apple Inc (AAPL) conforms to the universal rule of gravity and begins its downward trend.

This article has been written by Vinita Basu.

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