Apple (NASDAQ:AAPL) reported disappointing earnings yesterday primarily due to lower iPhone sales than what were expected. This really wasn't that much of a surprise as many iPhone lovers are waiting for the next model. iPad sales numbers were extremely encouraging and it is amazing to see a company become so overwhelmingly dominant, on so many different consumer products, in such a short amount of time. While the business and valuation based on current earnings looks great, the question of sustainable earnings power in such a fickle industry should not be overlooked. I'm neither bullish or bearish at current levels and I believe the best way to play the stock would be selling puts that are way out of the money. It is hard to see a precipitous decline in Apple, but a couple of years ago Blackberry was looking quite strong. Apple is far more financially strong and diversified than RIMM but they are doing things that no company has been able to do so there really is nobody to compare them to.
Disclosure: I am long AAPL.