Apple (AAPL): Beginning Of The End? Of Course Not

What makes being at the top of the market so special? To start with, it's no easy feat to make that ascent in the first place. In that regard, it is reasonable to ascertain that the companies that do make it to the top will not remain there forever. Recently, one of the titans of the tech world, Apple Inc. (NASDAQ:AAPL) , has been subject to that very same scrutiny -- more so than usual.

Having revolutionized the smartphone industry with status both socially and economically, it's no wonder that Apple generates as much chatter as it does. Recent weeks have seen that chatter become that of anxious investors planning their escape route. However, I would argue that rather than planning on an exit, now is the best time to enter into the tech giant.

With a market cap of $519.57B, Apple is very much a big-cap stock, typically characterized as a low-risk/low-reward investment. Sure, consumer confidence may be decreased now that hedge funds have unloaded more than $7B worth of AAPL stock in Q1, but major investors such as Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) have made news with purchases such as nearly 10m shares (or $1B) as well.

When analyzing Apple’s current downward trend, it is important to note that many factors have been external. U.S. News and World Report notes that luxury sales like those of many other industries, have diminished considerably in China. This is due largely in part to China’s slowed economic growth in recent months as well as a weakening Yuan.

Furthermore, Hong Kong has been negatively affected by its tie to the U.S. dollar, which has recently strengthened, in turn increasing the cost of living for Hong Kong residents and driving down tourism. Jackdaw Research reports that although China has accounted for half or more of Apple’s revenue growth for multiple quarters, it is now part of the cause of Apple’s current shrinkage.

For short-term investors, given its current state, Apple is not an option worth considering. A weakened smartphone and tablet market coupled with the aforementioned macroeconomic atmosphere has lowered Apple’s EPS, however the horizon is bright. Zacks estimates that as soon as the next quarter Apple’s sales will increase by at least $4B.

This past week, CEO Tim Cook visited India and met with Prime Minister Modi, along with other Indian elites. Apple is interested in expanding their operations in the Indian subcontinent, particularly in refurbishing and selling used iPhones. This movement is especially important considering Apple’s status in India as selling more “premium” productions.

In a nation where 70% of smartphones cost less than $150, Cook’s objective is to make the iPhone as accessible as possible. Furthermore, Apple unveiled plans to open a new office in Hyderabad that will “focus on development of Maps for Apple products” according to their official press statement.

The fact of the matter is that Apple currently finds itself at a crossroads -- not unlike Blackberry (NASDAQ:BBRY) in 2007 or IBM (NYSE:IBM) in the 1990s. The question becomes whether it will handle itself the same way, and succumb to the complacency that usually comes with an extended period of unprecedented success.

For long-term portfolios, buy now while Apple is low, and think forward to the next ten, twenty, and even 30 years. Apple has been chastised for their recent lack of innovation, but it is by no means an old dog without any tricks left to learn. There are plenty of rumors surrounding Apple’s potential business ventures, from the iTV to the Apple Car, which is believed to be their answer to the emerging electric vehicle market.

There is still plenty of upside left to be seen with Apple. Many look back on the early 2000s and regret either not buying in, or selling their shares of Apple too soon. The point that Apple stands at right now is a chance for those people to find redemption.