'Apple seen losing innovation magic'

Apple Inc, the world's most valuable technology company, has lost its edge among investors, according to the latest Bloomberg Global Poll.

Hedge funds sold large stakes of the iPhone maker's stock in the first quarter, Apple shares are down 40 per cent from last year's high and the company paid higher interest rates for a recent bond sale than Microsoft - in a PC trumps Mac moment.

Now, 71 per cent of poll respondents say the Cupertino, California, company has lost its cachet as an industry innovator, which includes 28 per cent who say it is permanent and 43 per cent who say it may be a temporary hiccup. There are still true believers; 23 per cent said Apple remains the best in the business. Six per cent were unsure.

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"They've definitely lost their momentum," said Lionel Mellul, 43, head of the cash equity business at Sunrise Brokers in New York, a poll respondent. "It's still at the point where they might turn things around. They still have a strong brand."

Chief Executive Officer Tim Cook said the company won't introduce a product to add to its innovations - the iPod, iTunes, the iPhone and iPad - until the US fall, one of Apple's longest stretches without a fresh gadget since at least 2000.

Apple remains the most profitable technology company, generating $41.7 billion last year. In the global handset business, the iPhone accounts for 57 per cent of the industry's profits, according to Canaccord Genuity.