Fund managers have spoken out in favour of tech giant Apple despite the announcement it would be launching its much-anticipated iPhone X later than expected, which caused a 2.5% fall in intraday trading on Tuesday.
While Tim Cook, CEO of Apple, said this model would be the "biggest leap" forward since the original iPhone, investors paid more attention to the launch date, which was set for November 3 in an unprecedented move for the company who normally set the release date in September.
The CEO unveiled three new models that will make up the iPhone X generation. The £999 top tier model will not have the famous home button, which has been a part of the iPhone since launching in 2007, while facial recognition, sharper displays and wireless charging were also among the key features unveiled.
Shares climbed to as high as $165.5 a share when Cook began talking about the iPhone X, but soon fell to as low as $159.5, a 2.5% dip, before recovering to close at $160.9 on Tuesday.
Despite the "staggering" £999 price tag, Adrian Lowcock, investment director at Architas, said the company had always been able to charge a premium compared to its competitors stating the key was not so much the price, but whether sales continued to grow.
"Apple have proven time again that they can create products that people want and are willing to pay for," he said.
"Never underestimate their ability to sell aspirational products. Apple have always been able to charge a premium compared to its competitors and they are still in that position to do so."
While Mark Whitehead, manager of the Securities Trust of Scotland, said despite the tech sector being prone to disruption, Apple remained in a strong position as their revenue comes from a variety of sources such as their services like the iTunes Store and new products.
"We expect Apple to continue rewarding its shareholders through dividends and buybacks, which since 2012 have totalled the current annual GDP of Portugal - standing at $205bn, the 47th biggest economy in the world.
"Apple is currently the largest holding in Securities Trust of Scotland," Whitehead said. "We believe the sustainability of dividend growth is very attractive over the next three to five years."
Tom Walker, manager of the Martin Currie Global Portfolio Trust pointed to the strength of the iPhone brand which makes 94% of the profit of the industry despite having a market share below 50%.
"The success of the iPhone is based on the richest ecosystem that has ever been built; today you can download 2.2 million applications for your phone - up from 800 in July 2008. The answer to all your problems is in an app!"
Although the iPhone X may have the allure as a gadget, Howie Li CEO, Canvas, at ETF Securities, said the tech giant was "not necessarily a panacea" for investors seeking technology exposure.
Li said the traditional bias towards FAAMG stocks, which includes Apple, "overshadowed" the high growth opportunities in small- and mid-cap companies.
"The robotics and automation opportunity, for example, is highly focused on global small- and medium-caps and the strong performance from the robotics benchmark index has captured the high growth opportunity without inclusion of these FAAMG stocks."
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