According to Dobbs, who was previously managing director at Credit Suisse, this will also be a problem for the entire S&P 500 index, as Apple controls about 7 percent of the index.
Long term strategy
Microsoft, for its part, has taken several steps that its investment director says make them a more attractive investment.
Among other things, the IT giant has spent nearly 45 billion dollars on investments to further promote operations. By comparison, Apple only spent $11 billion on the same, wrote CNBC.
Dodds pointed to, among other things, Microsoft’s acquisition of a 4 percent stake in the London Stock Exchange, announced on Monday, as evidence of the company’s long-term strategy to expand and develop cloud services.
– I think it’s pretty smart because they just locked LSE as a cloud client for the next 10 years, at the same time there’s a lot of competition in the cloud services sector right now, said the investment director.
Falling growth for Apple
Dodds also believes that Microsoft will be able to weather the global downturn because they are a more diversified business. Meanwhile Apple is depending more on a few very profitable revenue streams to sustain growth, according to Dobbs.
– Apple’s growth and profitability is based on growth in the services sector they have, but that business growth has not been as strong as people expected, he said.
This is also felt by the investment manager at Pella Funds Management, Jordan Cvetanovski. When Cvetanovski was a guest on CNBC’s “Street Signs Asia” last week, he believed that Apple’s growth would be even more difficult in the future.
– They rely heavily on consumers constantly convincing themselves that the Apple 14 is a must rather than the Apple 13, says Cvetanovski.
“Music maven. Evil pop culture lover. Unapologetic creator. Friend of animals everywhere.”