Hi Manny,

I've watched a lot of news videos about Apple and the iPhone recently.

My impression is that this will be a slam dunk for Apple, and I would be reluctant to short it (in my humble opinion).

It is now known that the touch screen is scratch resistant. It is also known to have a long battery life between charges (although the battery isn't removable).

Walt Mossberg of the Wall Street Journal gave it a good review. After a period of time, he got used to the touch screen (instead of pushing buttons), for dialing phone numbers. He tested a several hour phone call, with no problems. If he says its good, I believe it. He reviews technology products for a living.

The criticisms that stand out to me the most are that it can't access corporate email, and the fact that you are limited to only AT&T as a carrier. Some people will wait until their contracts end with other carriers on their current cell phone, before buying one, in order to avoid early termination fees.

My guess is that the second and third generation iPhones will be even better. This would help Apple take market share from competitors, and add multiple revenues to Apples stock.

No doubt, there is some "irrational exuberance" about the iPhone and Apple, but I think there is a lot of potential.

Sincerely,

Tim Henry

P.S.- Manny, your Utube videos will be able to be played on the iPhone.

P.S.P.S.- I just subscribed to Portfolio Crafter and placed two trades. Thanks Manny!

I agre that AAPL is probably over-priced but I think the simple analysis of iPhone ignores the potential "network effect" which will drive related AAPL sales from iTunes and of Mac computers that people will use with their iPhones. Their market share in personal computers is increasing and that is a very profitable business for AAPL.

Apple's market cap isn't just iPod - it's also all their other products, which they seem to be doing remarkably well with. On that basis I couldn't comment on whether Apple is over-valued. I am a technical trader, so would only go long or short based on the charts, not on whether I felt a stock of other instrument had good fundamentals or not.

Dear Manny,

One of the opinions on the REAUTER'S site says just :'IDIOTS'.

I would not necessarily put it this that strong, but if I have to express my opinion in one word, well, this is the word.

It is reminding me the day when I was tempted to spend $1,500 for a 'Nokia Communicator', only to re-sell it 2 weeks later, with some tinny profit, of course, but generally it was a BIG disappointment.

Also reminds me the PlayStation 3 hysteria of last November - in both cases most of the standbyers only re-sell what they purchased to more lazy(or clever) people who did not want to stay in lines.

The 'pros':

- great design (maybe the best looking phone ever), big buttons(easy to touch with fingers), big screen (glass, not plastic, so more scratch-proof), also the number of buttons is radically diminished;

- watching video & photos - great, 320x480 pxls, 9 GBt memo, but does not support Flash, which could be annoy;

The cons:

-Too expensive as chat devise, the cheapest service plan with $60/450 min, also does not support any non-US phone standarts, and cannot be use abroad (but on AT&T rates for roaming;

- does not support mobile e-mail for poor security, has no contact & calendar syncing; camera is mediocre, does not support games; power consumptions is too hing, means you should recharge every second day or so, thus be ready to pay for new battery every 6 month.

Obviously the next generation would be the one to look for. My strong belief is - when you need to travel, buy a car, when you need to talk - buy a phone. If you buy a car-dishwasher-copier-phone-toaster in one, you have none! Personally, I am using ofr a 2nd year a SIEMENS ME 45 with standby time 350 h., and talk time 300 min., you can swim with it, you can drop it from the second floor, and it still works, and does not coast the earth.

Seem mostly like an attempt to boost sales of iTunes and MACs, but will this be a success? I doubt it.

As to positive review by Walt Mossberg - it's a long time since he's on a fees from Apple, so he must be positive. I prefer the AP and Euronews reviews which are more impartial.

The WSJ conclusion is correct, though a little outdated. Share prices of AAPL are at a peak right now, and are very probable to go down sharply. A short sell would be a normal reaction, yet at a level you can afford to lose. Don't put the farm on it:)

Those IT 'blue chips' are always unpredictable, and with little to moderate risk one can always make some big bucks. Yet, don't bet the kids' college money:)

Happy trading,
Dr Ventseslav Tsolov

Manny, I agree somewhat to what you say about apple but lets not forget that apple not only makes Iphone; they make ipods, and computers. A new school year is about to start next month and is going to be a strong time for apple to sell computers and ipods. I dont think apples growth is in the iphone, thats what the analyst want but just like Steve Jobs said: "We dont only make iphones we are a computer maker." We might not see much growth there but thats why they have the itunes store. Overall, apple is a great stock. It should not be short at all yet. Wait until AT&T starts having problems with their network and starts damaging the iphone service. Who's idea was is to lock in the agreement with AT&T?