Reuters - Video

EDITION: U.S. | U.K. | IN

Most Popular

Apple falls from the tree

Friday, November 09, 2012 - 02:11

Nov 9 - Apple is rolling out products as it deals with management shake-ups, supply chain snarls and increased competition prompting some of its biggest shareholders to sell. Jill Bennett reports.

▲ Hide Transcript

View Transcript

PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Behind all of the hype around the barrage of new products including the new iPad mini....Apple has lost some of its luster on Wall Street. The world's most valuable technology company entered bear market territory, as its shares lost 20 percent - $130 billion in market value - since hitting a record high in September. Brian Colello, Senior Equity Analyst, Morningstar: SOUNDBITE: BRIAN COLELLO, SENIOR EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "There has been some concern about whether Tim Cook and the management team can live up to Steve Jobs' reputation, there was a bit of a management shakeup recently, there's concern about Apple maps and so sometimes we hear fear over whether Apple has lost its touch, we disagree with that but we can at least recognize that some investors may feel that way." Add to that, worries over supply chain snarls prompted concerns it wouldn't be able to meet demand for its hot iPhone 5, which accounts for about half of its revenue. The reaction on the trading floor has been quick. Apple, long a mainstay in many fund portfolios, lost one of its biggest fans. The American Funds Growth Fund of America, dumped 2.74 million Apple shares last quarter, 35 percent of its holdings. But most analysts are holding fast to their buy recommendations - with a mean 12-month price target of $767.40, which would be a gain of 40 percent. On that note: ING's Large Cap Growth Portfolio and the Columbia Value and Restructuring Fund doubled their holdings. SOUNDBITE: BRIAN COLELLO, SENIOR EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "The biggest strength of Apple is its ability to seamlessly integrate the hardware, software and services. If you look at a company like Samsung that does very well with hardware but they don't own the software. Google and Microsoft in particular is on the other side, they own the software but have never owned the hardware, they are making moves to get in to hardware but that integration, they are years behind what Apple is doing." Apple's latest parade of gotta-have-it gadgets is expected to account for 80 percent of sales for the December quarter - though the pressure to innovate won't disappear as Wall Street looks around the corner to 2013 for the next rollout from Apple.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Apple falls from the tree

Friday, November 09, 2012 - 02:11

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)