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Technology Stocks : Apple Tankwatch -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (1540)	3/9/2011 8:52:06 AM
From: Road Walker	Read Replies (1) \| Respond to of 32692

JPM Morgan Sees Apple (AAPL) iPad 2 Creating Bubble Burst for Tablet Rivals (MMI) (RIMM) 8:13 am ET 03/09/2011 - StreetInsider The talk of the tech world has been tablets for roughly the last year since Apple Inc. (NASDAQ: AAPL) unveiled the first iPad, which caused a tidal wave of competitors entering the space. JPMorgan analyst Mark Moskowitz warned investors on Wednesday that shipments for rival tablet makers may be to high, creating a bubble that could burst under the weight of the success of the iPad 2, which was announced last week by Apple CEO Steve Jobs. "In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan," Moskowitz said. The analyst is estimating that tablet makers will build 65.1 million units this year. Compared to Moskowitz's estimate for 47.9 million units sold, the companies could see as much as 51 percent oversupply. JPMorgan sees Apple continuing to hold on to the majority of tablet sales in 2011, nearly doubling sales from last year with 29 million iPads sold. Moskowitz sees the component suppliers having the most to lose from this scenario. "Based on our research inputs, tablet makers eager to emulate Apple s meteoric start are trying to secure components with inflated build plans," Moskowitz noted. "Of note, glass displays, processors, and, to a lesser extent, NAND Flash are the components that could be most at risk." Moskowitz said that the competing offerings to the iPad may prove to be "underwhelming." He notes that the Motorola Mobility (NYSE: MMI) Xoom and the TouchPad from Hewlett-Packard (NYSE: HPQ) may be the best of whats coming from Apple's competitors. Research In Motion Ltd. (NASDAQ: RIMM) and Samsung are among the others looking to capitalize on the burgeoning tablet market. Moskowitz said last week, that the firm's forecast of Apple holding on to 68 percent of the tablet market share may be conservative, given the positive reviews of the iPad 2. JPMorgan maintains an Overweight rating on Apple with a price target of $450.