This Apple's Still Cookin'

Computer sales are sluggish. And the near-term outlook for retailers and other electronics vendors suggests that the next two quarters could be particularly tough for Apple (AAPL Quote). Nevertheless, I am convinced that over the next year, the shares have some serious upside potential.

But before I delve into why, let's first consider some parallels with last year.

Last December, the sell side was extremely bearish on Apple. The outlook for PC/Mac sales was very uncertain heading into the New Year, and few thought the Christmas selling season would give sales a boost. Not surprisingly, this pessimism spilled over into the minds of retail and institutional investors. Before you knew it, the stock had dipped under $14, and most investors thought the company was washed up. ...