Growing competition in the smartphone market has taken the shine off Apple's stock. But the stocks of the "arms dealers"—those companies providing the communications chips to the handset industry—have fared better.
Apple's quarterly earnings report did little to restore investors' confidence that the company is developing the products that will allow it to compete with Samsung in the global smartphone market. Even a dividend hike and a massive stock buyback could not reverse the stock's slide—leaving it down 23 percent year to date.
(Read More: Apple Earnings Beat, Company Hikes Dividend)
"The dividend at this level is very attractive, but the erosion in the fundamentals is quite frightening," said Alex Gauna of JMP Securities.