Amazon dethrones Apple as new stock titan: iPhone 6s/iPhone 6s Plus and new products fail to impress
Apple was the stock to own in 2014 -- not anymore in 2015. Amazon has surged past the tech giant growing by as much as 67 percent as opposed to the 1.8 percent incurred by Apple. Despite a slew of new devices, predictions on Apple's market performance remain mixed with some saying that the latest offerings may even flop. Can Apple regain its throne?
Amazon has played a crucial role in managing and preventing further losses under the Standard & Poor’s 500 Index this year. The company's surge to the top is not just because of Apple's mishap but also its perceived haven status during a period when investors are not too keen on emerging markets. The company earns around 57 percent of its revenue in North America, rendering it less exposed to growth across the globe -- unlike its competitors.
"Nervous investors are looking to shift money from Apple, and for lack of new ideas, they’re crowding into Amazon." London-based fund manager at Miton Group, Hugh Grieves, told Bloomberg.
“There is also an element of fund managers with an S&P 500 benchmark feeling as though they must own these stocks or else they are at risk of chronic underperformance.”
Apple, on other hand, saw its shares plunge down following its product announcements. These also include Asian suppliers that work with Apple. Taiwan-listed Hon Hai Precision Industry Co. or Foxconn closed at 0.1 percent down. Taiwan Semiconductor Manufacturing Co. (TSMC) fell 3.1 percent, whereas Catcher Technology and Pegatron slid 1.6 and 0.8 percent respectively.
John Petrides from Point View Wealth Management told CNBC that part of the slump is due to Apple's pricing decisions. He discussed further: "Although the '3D Touch' is really cool, is that enough to get a person to upgrade to the 6S when you can buy the [iPhone] 6 at just US$99? I think this is just an evolutionary transition for the iPhone, not at all revolutionary."
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