Apple's Long Road to Break Even

It has been quite a year for Apple Inc.(AAPL) shareholders.

After Monday’s 3% rally ahead of Tuesday’s expected iPad event, the stock is closer to breaking even for 2013, a mark that seemed out of reach just a few months ago.

A combination of slowing growth and rising competition has taken a toll on the stock price since it hits peak in September 2012.  Shares have recently built some positive momentum and optimism is building ahead of Tuesday’s iPad event.

The iPad Mini is the world’s best-selling tablet computer, and is estimated to account for nearly two of every three iPads sold, as WSJ’s Daisuke Wakabayashi and Ian Sherr reported. It plays a central role in the company’s strategy for the post-PC era. Its latest batch of iPads will square off against a number of rivals from the likes of Samsung Electronics, Amazon.com Inc.(AMZN) and Microsoft Corp. that are chipping away at Apple’s lead.

“We believe this will be the most important refresh of the iPad franchise” since the product debuted about three-and-a-half years ago, says Brian White, an analyst at Cantor Fitzgerald. He estimates a new iPad will be about 15% thinner, anywhere in the range of 7% to 10% narrower and at least 20% to 30% lighter. It could also come in new colors, similar to the iPhone 5S released last month.

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Apple shares hit $524.19, the highest level since January. The stock price started the year at $532.17, meaning it is coming close toward breaking even for 2013.

In addition, billionaire investor Carl Icahn disclosed in August that he had built a significant stake in the iPhone and iPad maker when the stock was trading at about $465. Shares have since risen 13%.

To be sure, it isn’t time to start cheering Apple’s feat just yet. The company still significantly lags both the S&P 500, up 22% this year, and the tech-heavy Nasdaq Comp, up 30%.

And Apple has a long way to go in its comeback effort. Shares remain down 25% from the record high above $700 reached in September 2012.

Consider the recent move a baby step in the right direction. Shares traded south of $400 as recently as the end of June before mounting the latest rally.