Fidelity Contrafund, the equity fund with largest active stake in Apple has cut its shares in the company by almost 10% due to poor performance from Apple over the past few months. Portfolio manager Will Danoff who is managing the investment said that Fidelity reduced its shares from 11.56 million to 10.43 in this February 2013. There is a terrific demand to Google’s stock right now which is taking place of Apple lately with Google stock touch almost $800 whereas Apple’s stock crashed down to a mere $430 approximately. After the sellout of Apple’s stock Fidelity Contrafund now has Google as the number 1 company on their list 5.8% of their entire fund and Apple on number 2 with 5.2% of their entire fund amount.
Google seems to be the favourite for 50 largest actively managed mutual funds in America currently. Analysts predict that Google will soon outpace Apple and emerge as a clear winner in the years to come. Google already has a strong presence in mobile segment with Android occupying almost 70% of the smartphones right now and iOS on just 17% to 20% and with the recent hardware launches like Google Glasses and Chrome Pixel, Google showed the world it can match Apple in hardware if needed. A simple statement can sum it all up “Google is advancing more rapidly in hardware than Apple is in software and services” which shows that Apple needs to build its services rapidly to give a good fight now.
Apple’s quarterly call scheduled for 23rd April is quite critical right now with Apple expecting to shed out few future plans about the kind of investments it will be making with the cash reserves.