>> A rift is brewing among Apple investors over whether the company should address fears that too much screen time maybe harmful for kids. Two major Apple investors are urging the company to take action against iPhone addiction. An open letter to Apple sent by hedge fund powerhouse JANA Partners and the California Pension Fund cites recent study that finds screen overuse could hurt the development of children's brains and is contributing to depression and suicide risk in teens.
But Reuters reporter Trevor Hunnicutt spoke with some Apple investors who say getting hooked on smartphones is exactly the point.>> What they're telling us is that the fact that Apple products are addictive is what makes the company so great. So a lot of investors like stocks that are hated by some people, they like stocks like alcohol, tobacco, gambling, why?
Because even in a recession, people spend money on those things. And some people are starting to think of Apple as being a sin stock, kind of like those.>> One fun manager says the real culprits are social media companies, and that Apple is merely the portal through which Facebook and Snapchat keep kids coming back for more.
Apple has not commented on the letter, and while its products come with parental controls, some fear if Apple doesn't do more proactively, the government just might.>> Technology companies have been the market leaders. They have been the stocks that have seen the biggest rise over the last few years.
And the only kind of shadow on the horizon is this idea that maybe some day the attention that these companies are going to get is lead to more regulation and it's gonna cut back on their profits. So there is a corollary to what happened with the tobacco industry where they faced a number of lawsuits and regulation that curtailed their profits.
So that's kind of the biggest fear for investors over the long run.>> Investors have already seen some regulatory backlash. France, for instance, is banning mobile phones from schools at the start of the next school year.