Apple Inc (AAPL)

[Laize]

It's the "it can't happen to X" mentality that I can't get behind.

Apple has a wide moat. I won't deny that. Their brand loyalty is trumped by pretty much only cigarette customers.

However their products are NOT essential to everyday life. The idea that they could never falter is asking for trouble.

They have 2 products keeping their share price afloat. But that doesn't mean they only make 2 products.

- iPods have long since been cannibalized by the iPhone.
- Mac PCs and Macbook sales growth rates are locked in a permanent state of anemia.
- Apple TV is a product they pretty much refuse to acknowledge due to it being replaceable with an HDMI cable

There are many customers who will buy Apple products out of hand for no reason other than belonging to a bizarre cult. The majority of their customers will buy an iPhone or iPad so long as they remain better than the alternatives.

Fact is that the iPhone is already not out-of-hand better than Android options. The only advantage to having an iPhone over a high end Android phone is you get A) the Brand and B) no bloatware. iPhone is more expensive for lower performance. I'm not knocking the iPhone. I'm simply stating there's less putting the iPhone ahead of Android than there used to be.

The iPad is better positioned. I still don't see the tablet market being irrevocably and forever Apple's however.