On this weakness, AAPL became a screaming buy in the holiday quarter, for several reasons. First of all, nothing has changed. The media treats the Cook/Jobs hypothesis like it's something new. It's not. But it needs time to mature. Second, that relatively weak quarter we just saw from Apple? It was expected. I called it in August. Third, Apple traditionally offers weak guidance. It's a well-designed bear trap.
Still No CompetitionBut the bigger reasons have to do with the fact that the company remains in a class by itself. Apple will crush the holiday quarter (results come January 2013). Do you really think consumers will flock to devices other than iPhones and iPads? Research in Motion ( RIMM), for instance, will not release BlackBerry 10 until the end of January. Don't expect modest sales of Microsoft's ( MSFT) Surface tablet to explode even when the company broadens distribution. Consider the dynamics of this "competition." Apple dominates the consumer mobile market against companies such as RIM and Microsoft. Microsoft doesn't want to become RIM and lose to Apple in enterprise as well.
Simply put, both companies, particularly RIM, are focusing on business customers with their new products. That's not as sexy to investors as the consumer and we tend not to hear about reports of enterprise success as frequently and fast as we do consumer traction.