Concerns about technology giant Apple Inc. (NASDAQ:AAPL) have certainly been felt by shareholders of late, with the company's stock price remaining down more than 35% since Apple's recent all-time high seen last year. A slowing Chinese economy is being blamed for the majority of the company's woes, leading Apple to cut its revenue forecast by a significant margin (billions of dollars) this past quarter and calling attention to an inevitable iPhone sales slowdown which was yet to materialize.
Investors and analysts generally disagree on when "peak iPhone" will hit, but the fact remains that a slowing growth profile, even in the near term, for one of the greatest growth plays of our generation, certainly speaks volumes about the state of the global economy. Shares of Apple have generally ridden bullish momentum related to its key product, the iPhone, much higher in recent years.
Questions about the effect of a global slowdown on such firms may certainly deserve be one to be heeded, though I continue to stand behind Apple and the state of the company's balance sheet in being able to weather the storm.
The bottom line for me is this: if Apple is too risky of an investment in this current environment compared to the alternatives, I would invite investors to get into very liquid assets quickly to avoid the pain that is to come. For those sticking in equities, Apple stock seems to be a great place to start for long-term value.
Invest wisely, my friends.
