“Apple over the last few years has benefited from very inept competition,” Santos writes. “Now, companies like Google, Amazon and Samsung really get it. These companies are providing real competition to Apple, and as such the market is reacting to Apple not being the absolute dominant player it has been for the last 5 years. Android is set to dominate the low end of the smart phone market, and Amazon wants to ride the tablet trend in order to sell content. Samsung and Apple are really the only profitable handset makers for smart phones.”
Santos writes, “Apple is poised to deliver a blow out Christmas season. The only thing holding it back are supply constraints for some key components. I have confidence in Tim Cook, and know the management of Apple is working hard to resolve these issues. Apple tends to predictably drop around this time of year, but then deliver huge upside in January when the numbers are tallied. The talk of the fiscal cliff affecting Apple is mostly noise… Overall, Apple to me is a screaming buy. In the short term it may go down more in share price, but its valuation is very attractive at these levels. Buy when others are fearful is an excellent axiom, and one I follow for my long term holdings!”
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