Quick chain of events:

• I explained the business strategy behind the iPad designed to allow Apple to enter the netbook fray without Margin compression it worked!

[youtube]http://youtu.be/g-JQt9Jpw7w[/youtube]

• The iPad, a raging success, still had lower margins than the cash cow iPhone franchise but still served its purpose in allowing Apple to diversify its revenue streams for over 60 percent of its profits came from a single product – and that’s dangerous!
• I warned that Google’s Android will quickly start eating Apple’s lunch, which was high in margin fat. I was proven correct as Apple’s tablet market share (a market that Apple ingeniously reinvented) fell from 92% to 32% in just 3 short years.

Reference:

How Google is Looking to Cut Apple’s Margin and How the Sell Side of Wall Street Will Enable This Without Sheeple Investor’s Having a Clue

Sliced Apple Margins For Dinner?

Steve Jobs Calls End Of the PC, We Call The End Of The Fat Margin Tablet – Including The Pretty iPad, With Proof! 

Then go on to BGR.com: History repeats itself: Android tablet shipments blow past iPad

Whether or not people are really using Android tablets, it has become clear thatAndroid tablet shipments are absolutely exploding as Apple’s overall iPad shipments decline. 

iPad Shipments Decline As BoomBustBlog Time Machine Disrupts …Jul 31, 2013

Apple’s iPad Is Losing Market Share And Profit Margin As Apple Hits …Mar 16, 2012 

• Samsung emerged as the top Android vendor (again as forecast at BoomBustBlog, reference Deconstructing The Most Accurate Apple Analysis Ever) by offering a wide array of products, many of which offered superior performance to Apple’s, due in large part to Android performance enhancements and capabilities. 

• Samsung released 7 and 8 inch tablets which sold well. I forecast that tablet sales will continue to dwindle due to the increasing capabilities and screen sizes of cell phones. The performance and comfort of use delta is shrinking quickly.
• Samsung released the Galaxy Note, though panned by tech critics and pundits, was a success in the market.
• Samsung released the Galaxy Note 2 which further defined the segment and was a raging success.
• Google launch its own branded tablet, the Nexus 7, at a cut rate price with leading performance and it was an immediate hit- confirming my thesis on the converging form factor – reference Steve Jobs Calls End Of the PC, We Call The End Of The Fat Margin Tablet – Including The Pretty iPad, With Proof! 

Apple US sales have completely stalled and growth is coming only from international sales. Those sales will be stymied in part by devices such as the Moto G on the low end and the Oppo Find 5 and N1on the high end – both with a price/performance ratio that can’t be touched by a fat margin vendor – Apple or otherwise.

Subscribers, download the Q3 2013 valuation reports (click here to subscribe).

 Apple 4Q2013 preliminary update

•  Apple 3Q2013 Valuation Update – Retail
  (Technology)
•  Apple 3Q2013 Valuation Update – Pro & Institutional
  (Technology)

The update from two months ago is also of value for those who haven’t read it. It turns out that it was quite prescient!

1.  Apple 1Q2013 update – Pro & Institutional (Technology)
2.  Apple 1Q2013 update – Retail (Technology)