Apple Inc. (NASDAQ:AAPL) is one of the world’s most successful tech companies and it’s easy to see why. The immense success of gadgets such as the iPhone and iPad attribute to the company’s big portion of success. There is little doubt Apple Inc. (NASDAQ:AAPL) is enjoying its successful run, however, all good things must come to an end. The Cupertino-based tech company may be hitting a tough spot, which is why the Wall Street Journal believes it could become the new Microsoft Corporation (NASDAQ:MSFT)

Analysts take a closer look at Apple’s future

In a recent note from Barclays, analysts wrote, “Frankly, we just couldn’t quite bring ourselves to use smart watches or TVs as reasons to raise numbers–nor were we fully convinced that these products could move the needle like new categories did in the old days. As a result, we believe it is time to step aside, given a maturing smart phone market.”

Apple

Apple’s shares recently fell 1.3% which now makes it $530.50. Fortunately, the stock remains up over 20% in the last year, even if the stock is still far from its record high. Another big problem for Apple is the fact that its valuation is considered cheap compared to companies like Facebook, Google Inc (NASDAQ:GOOG), even Microsoft Corporation (NASDAQ:MSFT). The company trades about 12 times future earnings, significantly less than price-to-earnings ratios from competitors.

Problems continue to affect Apple

Another big factor in Apple Inc. (NASDAQ:AAPL)’s decline is the slow development of new products. Although the iPhone maker did launch revamps of new products last year, the fact that Apple didn’t launch any new or revolutionary products put a damper on stocks. Thanks to the company’s recent (and highly anticipated) partnership with China Mobile Ltd. (NYSE:CHL) (HKG:0941), Barclays analysts believe it will rise slowly and high prices could hinder adoption.

Although it’s possible new developments in things like wearable devices or television could offer an upside, it may not be enough if it’s not as revolutionary as previous devices. Apple has also failed to buy-up products and services that would benefit the company in the long run, unlike competitors like Facebook Inc (NASDAQ:FB) or even Google Inc (NASDAQ:GOOG), both of which continually beat Apple Inc. (NASDAQ:AAPL) in buying products and service to expand their company.