Investors still bullish on Apple stock

Investors still bullish on Apple stock

Apple shares are in correction territory

Apple stock price did drop for a bit recently that has frustrated investors who have bought at prices of around $650. The drop may be due to a market correction after it hit some highs due to the iPhone 5 being released last month.

The P/E ratio of 15 points to higher earnings and a possibility that Apple could hit $1000 a share by the end of 2013. It is supposed to be an incredible buying opportunity at its current price of $632.20 a share. Still, I am pretty skeptical about Apple's short-term prospects and though it may seem like a good time to buy, investors should wait a little.

The other problem is that Foxconn is responsible for the iPhone 5 shortages that is making customers who pre-ordered - creating the initial buzz - to switch to the Samsung Galaxy S3 and other similar smart phones.

I guess the reason why Apple stock is getting hammered is because it is losing its dominance in some markets; an inevitability. Competitors are obviously going to catch up at some point with the top players being Samsung, Amazon, Google and Microsoft among others. The other thing is that the market will mature, but there is still hope for Apple as the iPad "Mini" could see some resurgence in the stock price.

Apple's profit margins are high compared to its industry peers and this was responsible for the massive cash pile. But these profits are falling and since Apple is not a monopoly like Google or Microsoft it will have trouble sustaining profits in the future.

Nonetheless, Apple could have some tricks up its sleeve. History has shown investors that Apple stock should be bought when market participants are really pessimistic about it.