Apple (NASDAQ:AAPL): is it time to sell Apple? company news imageI have some doubts about Apple (NASDAQ:AAPL). I get the sense that's heresy. Apple seems to be unable to do anything wrong at the moment. Steve Jobs is the new Messiah, the iPad is the way of the future, and if you want to know the Meaning Of Life you can probably find an iPhone app that will tell you precisely that. Investors are happy, too. You could have bought the stock for USD 120 last May, and it's now trading over USD 240. 

But let me explain. Although I'm not a Microsoft lover, I've never had much time for Macs. They were always for the kind of people who actually liked being unable to share applications or documents with the rest of the world. A small band of die-hard, out-of-step fans. With iTunes, the iPhone, and now the iPad, Apple has set about changing that. Instead of continuing to compete from a position of weakness against Microsoft, HP, Dell, and a plethora of low-cost PC makers in the desktop market, Apple has invented new markets where it can take a dominant role. It's been breaking the mould and creating new expectations - and unlike Microsoft, it's been surfing the trend, rather than missing the wave and desperately paddling to catch up. You could almost say that Apple is doing for hardware what Web 2.0 did for the internet - moving away from the desktop dominated world towards a more distributed model, with specialised devices of different kinds all accessing a common information base, but in different ways. And Apple has been smart about its revenue streams too. Though its most obvious business model is flogging hardware, it's also built up continuing streams of royalty income. Its App store is the only way to get an application on to the iPad - a quasi-monopoly Microsoft would kill for (and the EU might even ban, in Microsoft's case). And it's made a small fortune out of flogging tracks on iTunes, too. (That's seem smarter than Microsoft, which still relies far too much on initial licence fee income.) 

What are the attractions of the stock? Well, it's sitting on cash [1] if you take the cash out of the share price, the stock would be trading at a…

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