Most of the pessimistic narrative on Apple (NASDAQ:AAPL) in these times of travail for the stock discusses its falling market share to Samsung (SSNLF.PK), its dipping earnings and margins, its possibly stagnating growth in Western economies, and the trouble with marketing its high-end products in emerging markets.
The negativity has stuck. Apple has fallen 35 percent in 4 months, dropping about $200 billion of its market value. It is also trading substantially below its long-term 200-day moving average for the first time in four years. However, according to portfolio manager Dan Morgan, all Apple needs from investors right now is patience.
“You have to bear in mind that every time Apple goes through a new product cycle, you see a very similar margin picture, a very similar situation,” Morgan said on CNBC on Monday. “We’re not ready to put the brakes on Apple, not ready to say it’s going down the tubes, like Nokia (NYSE:NOK) or Research In Motion (NASDAQ:RIMM), where they lost their position.
We have to give them a little bit more time to see if they can penetrate into China […] We’ve got the new TV coming out, that could be exciting for them. We’re willing to give it a little more room here … Let’s just see what happens, give it a couple more quarters.”