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Everyone Loves iPhone 5, Further Screwing Up an Unbalanced Smartphone Industry


Apple's new iPhone 5 is a megahit.

So the tablet market is even more unbalanced than the smartphone market, and I don't want to see what happens when the dramatically underpriced Amazon (NASDAQ:AMZN) Kindle Fire HD hits it big. (See Amazon's Kindle Fire HD Is a Menace to Android and a Friend to the iPad.)

The bottom line is, if you're a chipmaker that isn't selling to Apple in a big way, then you're in big trouble.

To be clear, in addition to my big position in Apple, I'm long SanDisk (NASDAQ:SNDK) based on my belief that people will wrongly or rightly think Apple will shift business there. I don't care if it's true or not, I'm just betting on other people's perceptions for the short term. I'm also increasingly tempted by Qualcomm (NASDAQ:QCOM), which I believe is, in fact, doing huge business with Apple.

OK, I'm done. Have a nice weekend!

Twitter: @MichaelComeau

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Position in AAPL, SNDK
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