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I admit, sales of the iPad beat my expectations. I didn’t think that this device would do that well, and I still think it’s an oversized iPod Touch. That said, AAPL has continued to rally, although Reihan Salam at The Daily Beast has now turned bearish.

Notable quote:

Apple is no longer a scrappy underdog…Competitors have found Apple reluctant to approve iPhone and iPad applications that pose a threat to Apple’s own offerings, while others have been banned for risqué content. Techno-utopians are confident that Google Android, with its more open approach, will eventually win out. For now. At least, the iPhone’s superior user experience is keeping Google and other rivals at bay, but that won’t last forever.

It is worth noting that Apple is basically now a mobile devices company. Smartphone and personal music player sales bring in much more revenue for the company than computers. Occasionally I get pretty amusing hate mail from Apple fans whenever I post something questioning or negative about the company. I am not willing to take a short position yet, and AAPL likely has room to continue upwards in the near-term (3 to 6 months). That said, HTC, Google (GOOG) and Motorola (MOT) are stepping their game up. Motorola seems to have come back from the dead and has regained market relevance with the Droid phone.

Tech is one of the most exciting parts of the market to watch with new developments happening constantly and no one company ever staying in first place for too long. Apple is in the lead now, as Dell (DELL) and Google were in the early portion of last decade, and IBM (IBM) and Microsoft (MSFT) were in the 1990s. Keep an eye on this story.



Disclosure: None

Source: A Contrarian View of Apple