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Apple Losing Ground to Competitors: Doug Kass

Tuesday, 9 Oct 2012 | 12:35 PM ET

Apple has lost its edge to competitors, and its stock could become vulnerable, Seabreeze Partners founder Doug Kass told CNBC on Tuesday.

On “Fast Money,” he argued that the iPhone 5 maker no longer holds the technology lead it once did and faces new challenges.

(Read More: Apple's Stock Is Down Over 10%—Time to Buy?)

“Apple used to have market-defining product that was literally better than its competition,” he said, adding that it was no longer the case. “Apple is now selling equal or less for more money.”

Google’s Android mobile platform, which operates on smartphones by the likes of HTC, Samsung and Motorola, has been gaining market share from Apple.

Apple: Buy on Today's Dip?
Shares of Apple are down more than 10 percent from its late September peak. Doug Kass, Seabreeze Partners, says fundamentals play a role in the stock's decline and Apple is "now selling less, or equal, for more money;" and Brian White, Topeka Capital Markets, says Apple's "demand is overwhelming supply."

Up 70 percent for the year, Apple stock became vulnerable to profit-taking from institutional investors as year-end approaches, Kass added.

(Read More: Google Better Than Apple for This Reason: Verrone)

“They have massive delivery issues considering the growing size of the company,” he said.

Kass appeared to urge skepticism.

(Read More: Blodget: iPad Mini Could Hurt Apple Margins)

“We have to watch to see if this first mover advantage is protected,” he said. “Apple’s shares could turn around in a nanosecond, but there are for the first time, there are chinks or bruises in the Apple story.”

Mike Murphy of Rosecliff Capital said that the pullback was a buying opportunity.

“Absolutely. I don’t know why you wouldn’t,” he said. “There’s nothing fundamentally that has changed.”

Brian White of Topeka Capital Markets also remained an Apple bull.

“I look at this pull-back as a gift ahead of the holidays,” he said.

Trader disclosure: On Oct. 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Michael Murphy is long AAPL; Michael Murphy is long WFC; Michael Murphy is long TGT; Murphy is long TRN; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long SBUX; Joe Terranova is long NFLX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long VLO; Joe Terranova is long CCSTR; Joe Terranova is long CHKP; Joe Terranova is long GLW; Joe Terranova is long EMC; Joe Terranova is long NXPI; Gemma Godfrey is funds long AAPL; Gemma Godfrey is funds long JPM; Gemma Godfrey is funds long MSFT; Gemma Godfrey is funds long AMZN; Gemma Godfrey is funds long GOOG.

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