Doug Kass, hedge fund manager is treading a line that few dare to follow as he is getting more and more critical of Apple each and every day that passes. The Wall Street Journal reports that in one of his latest memos he said that there were more bruises on Apple and he went on to show his concern about the iPhone 5 and how it matches up to other devices on the market.
iPhone 5 marks downhill ride for Apple brand? (WSJ)
According to him, Apple may have lost their mojo as this is the first time Apple have launched a product that has no wow factor and no cooler than other products on the market, such as HTC One X and the Samsung Galaxy S3.
Shares have recently risen by 1.1% to $668.72 and stock has gone up by 65% this year. Over the summer stocks passed Microsoft as the biggest company in the US, which is measured by the value on the stock market. However shares are down by more than 5%, since they managed to hit a high of $700. This was the day that Apple launched the iPhone 5.
Critics have said that initial sales of the new iPhone 5 are only lukewarm in comparison to what analysts had predicted. Apple managed to sell 5 million units in the first three days of the phone being available. However some thought this amount should have been higher. Some even said that Apple should have sold more than 10 million units during the first weekend of the iPhone 5 being on sale.
The question is that following the untimely death of Steve Jobs, can Apple retain the magic they used to have when Jobs was around? Their products are becoming more and more expensive and they are no better than those that are currently on the market, this is eventually bound to hurt Apple when people realise they can get something the same or better for less money, without the Apple branding.
He predicts that Apple will continue to report strong quarterly results, for the near future thanks to the global rollout of the iPhone 5. However he is keeping his stance on the company.