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Apple Inc. (AAPL): A Cell Phone Giant Risking it by Going it Alone

Apple Inc. (NASDAQ:AAPL), which has been shifting away from its reliance on Google Inc (NASDAQ:GOOG), too, incurred the wrath of the markets when its maps application couldn’t competently replace Google Maps. Although that didn’t hurt sales, which continued to grow at an impressive clip despite the Maps gaff, an entire operating system is a different issue. That could quickly turn customers off from Tizen products and, perhaps, the Samsung brand.

Getting a Beatdown

Some of these concerns are behind the recent price drop at Samsung. Although the company remains wildly profitable and is a leader in the device space, investors shouldn’t get underneath this falling knife. Apple Inc. (NASDAQ:AAPL)’s decline is a clear demonstration of how bad the market can overreact on both the upside and downside.

For example, Apple Inc. (NASDAQ:AAPL) shares are now some 40% below their peak. Although the company has its own set of issues to deal with, its price to earnings ratio is only about 10 and it sports a yield of around 2.9%. The big price drop and notable yield provide a nice support for the shares. In fact, Apple is looking like a value stock.

Big Changes, Fickle Market

Investors considering an investment in Samsung might be better off with Apple Inc. (NASDAQ:AAPL) shares. Investors can be very fickle and Apple’s bad news has already taken a toll on the shares. Samsung is taking a big risk with its home-grown OS while seeing slowing demand, which could turn ugly fast for shareholders.

The article A Cell Phone Giant Risking it by Going it Alone originally appeared on and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL). Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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