Apple might be posting record profits and sales since the last few quarters continuously but various concerns over stagnation of innovation from Apple’s products and lack of further growth is driving investors away from Apple’s stock lately. Apple’s share price crashed by a staggering 21% in the last 12 months whereas Google’s stock increased by 35%. Even after all the negativity going on against Apple it is still trading on the top of the charts along with Exxonn Mobil.
Bloomberg explains that the main reason behind rise in trading of Google’s stock is because of Google’s dominance in search and ads. Currently Google owns almost 40% of US online ad market and is projected to reach 55% by end of 2013. Google strength point is in services, ads and online market whereas Apple’s is more in Hardware than in services. With the huge cash reserves for Apple this seems to be like a perfect time to stop pleasing investors and start buying back its stock.
With the rapid dominance of Android which is currently occupying almost 2/3rd of smartphone market Google has an even better reach to its ads market and search services. Apple seems to have stagnated with its premium smartphone market currently, though Apple has the potential to retain most of its market share the chances are bleak for Apple to extend its share further. The best bet for Apple right now is to launch another disruptive product by end of 2013, if rumours prove to be true Apple might be launching a watch or a TV by end of 2013.