2 Reasons Apple Inc. (AAPL) Is a Straight-Up Bargain

Web traffic data paints an even brighter picture of Apple’s dominance in tablets. In the U.S. and Canada, Apple’s iPad represents 81% of tablet web traffic. Second and third place belong to Amazon and Google, who respectively captured 7.7% and 3.9% of tablet web traffic — far behind Apple. Their progress, however, is notable. The Canalys report claims that Apple lost 5% of its U.S. and Canada market share during the holidays, mostly due to Amazon and Google’s cheaper tablets.

Apple’s dominance in tablets going into 2013 is extremely important in light of numerous research reports that point to a tablet market that is growing faster than the smartphone market. For instance, according to ABI, the tablet market is expected to grow by 125% in 2013, compared to 44% smartphone market growth.

Unrealistically gloomy expectations
Given an enormous smartphone market and a dominant position in the fast-growing tablet market, Apple just doesn’t merit a P/E of 10.

The article 2 Reasons Apple Is a Straight-Up Bargain originally appeared on Fool.com and is written by Daniel Sparks.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Goldman Sachs, and Google. The Motley Fool owns shares of Amazon.com, Apple, and Google.

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