William Tell Versus The Apple – Will Apple Survive the Tablet Wars?

Apple has a loyal brand following that just won’t quit, and whatever new gadgets they produce, there will be lines out the door and around the block on the first day of sale. And when those in line over-night are interviewed, they are enthusiastic and devoted, but how long can Apple continue to woo its clientele, as the price war onslaught comes forth? This has been a very speculative debate, so let’s talk.

Recently, there was a piece in the Wall Street Journal titled “Toting Up the Tab – Components in the Apple II Cost Just a Few Dollars More Than the Original Model at Introduction, Research Firm UBM TechInsights Found After Taking Both of them Apart” which is not completely shocking to anyone perhaps, but it does show how Apple may have a tough time competing with all the tablet clones and copycats coming out if it hopes to maintain the $729 retail price tag if the components are only $270 inside. See that point?

Has the tech sector figured this out? Well, Apples stock is in flux, although some analysts think it’s going to $500 per share, others say; “no way, it’s definitely going lower!” So, who is right and who is wrong? Hard to say, because Apple always seems to pull a rabbit out of its hat it seems.

Now then, there was an interesting article recently on Seeking Alpha titled; “Is Apple a Falling Knife?” written by Rocco Pendola on March 16, 2011 which reiterated some market concerns such as the challenges in China with Foxconn, one of the major component manufacturers for China and the reality that Apple sales for iPhones is showing its pace of growth slowing, while it is also competing with its own Tablet sales of the iPad, while there are about 100 new tablets entering the market from competitors.

Additionally, some analysts see a few angered customers which could cost the company due to the transitioning from the iPad I to the iPad II which Apple said it would make good on and refund money to users who recently bought the iPad I without knowing the new iPad II was coming out so soon. Rocco Pendola stated:

“It’s quite remarkable when a company does what Apple has done over the last week. Yet the stock falls from a high of $361.67 on March 7 to an intraday low of $326.26 as of midday Wednesday. In this regard, I guess AAPL has acted like a falling knife… but what’s done is done, so looking forward becomes the going concern.”

Some tech analysts say Apple will get some breathing room thanks to the Japanese Earthquake and Tsunami which has all but shut down the electronics industry there, where 40% of ALL the worlds electronics are made. Meaning all these new tablet look-a-likes will be delayed before reaching the market, but just like the Tsunami which slowed down their process, that wave is coming, and nothing is going to stop it.

Question is; what does Apple have up its sleeve next? There’s always something, Apple is the King of the Inflection point on the product lifecycle curve, that historically has been their battle plan as they are constantly blitzing the personal tech market. Indeed, I hope you will please consider all this.