There are reports circulating that Apple Inc. (NASDAQ:AAPL) has several new products in the works, including iTV and a smart watch. The naysayers never say anything about that.
Other companies seem to be a lot more innovative to these people.
For example, Google Inc (NASDAQ:GOOG) has developed prototypes of its Internet-enabled eyewear, Google Glass, and has plans to formally release it in 2014.
I admit it is very innovative. However, analysts have not commented on the feasibility of actually transforming it into a product that consumers will purchase in droves like the iPhone. Over 300 million of them (one for every man, woman and child in the U.S.) have been sold generating $180 billion in revenue and $90 billion in profit so far for Apple.
Note those figures apply just to the iPhone. Doesn’t even include the various Mac, iPod or iPad offerings, or the 50 billion iOS apps that have been downloaded so far, far exceeding the number for Google’s Android operating system, which is used on most other smartphones, including the S4.
There are several issues with the Glass technology right now, including the fact that people that need prescription lenses can’t use it yet, although there are indications that versions for regular eyeglass wearers are being tested.
And there are some privacy concerns. Some people may not want to be recorded by the camera-ready devices.
Did bad press hurt Apple investors?
So how does the bias affect investments in any of the stocks?
I’m not implying that the bad press was the only thing contributing to the decline in the price of Apple stock. The company did report results in three different quarters that were below its usual level of performance, including the first actual decline in earnings in several years. Apple Inc. (NASDAQ:AAPL) is probably in a transition from a high-growth company to a value-orientated, dividend-paying stalwart.
However, I believe that the negative publicity probably influenced many investors and kept them on the sideline although things aren’t as bad as indicated in the press.
In addition, the reporting of only good news for Samsung and Google, warranted or not, most likely resulted in investors buying their shares and pumping up the price.
I don’t think think Samsung puts out a product that much better than Apple Inc. (NASDAQ:AAPL), or Google is more innovative. All three companies could be considered for your portfolio.
Conclusion
I have no problem with the success of products provided by competitors of Apple. I actually think Google Glass is a great innovation and that the S4 is probably a solid phone.
I do have an issue with analysts and the financial media that exhibit obvious bias against a company and minimize their accomplishments, which tends to help drive down the stock price.
The article Apple Can’t Catch a Break originally appeared on Fool.com and is written by Mark Morelli.
Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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