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I don't see Apple discounting, they haven't had to as footfall has been good. Ya the iPhone didn't sell where expected but we've already beaten that issue to death here with speculation that people don't want the internet and other features so elect for a Touch and a cheap phone, and/or the limitation of AT&T versus other providers for those who refuse to or can't do business with Verizon.

iPod growth was good globally but was down 16% in the United States IIRC (it was either US or North America). Desktop/laptop sales were right on target despite the high margins and higher price points.

AAPL has huge momentum and is just about the only retailer in North America laughing to the bank.

With all of that said I view AAPL as a lifeboat stock (like CLX, GOOG, or JNJ) for the rest of 2009. It isn't AAPLs fault, it is just the market. AAPL is not 100% immune to the economy - job losses - spending slow downs and tightening credit will exact a toll and there is eventually a bottom where people will put off purchases - the point being - lifeboats can leak.

I see AAPL trading from $90 to $120 with market volatility. It could test $80 and it could test $125 on the high side. The problem with a lifeboat is eventually when too many people jump in ($125 land) you start having people bailing out because they want to catch the gains and call it good. The good thing about a lifeboat is when it isn't full up ($90 land) people want to climb in and lift the stock up. The three stocks I mentioned above CLX, GOOG, and JNJ are great examples of stocks doing this with AAPL. Of the four GOOG is probably a bit leaky.

If you've been following these ups and downs, climbing in the boat under $90, climbing out of the boat when it gets close to $110, there are probably some people here that have printed money between October and now.

Good luck!
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