Report on the growth of tablet computers
Comment of the Day

April 05 2011

Commentary by Eoin Treacy

Report on the growth of tablet computers

Thanks to a subscriber for this interesting 96-page report focusing on the developing tablet computer sector.

Eoin Treacy's view Apple, (see above) has been a clear leader in this sector. While I have yet to take the plunge personally, preferring to wait, it seems to be only a matter of time before I purchase a tablet computer. I suspect there are a large number of people in a similar situation.

Samsung is one of Apple's largest competitors in this sector. The share ranged mostly above the 2006-2008 highs for most of last year, broke upwards in December and encountered resistance near KRW1,000,000 in late January. It has since found support in the region of the 200-day MA and a sustained move below KRW850,000 would be required to question medium-term upside potential.

Sandisk found support near $5 in late 2008 following a precipitous decline and has since rallied impressively. It has paused below $50 for much of the last year in a gradual reversion towards the mean and continues to find support in the region of the 200-day MA. A sustained move below $40 would be required to question medium-term upside potential.

ARM Holdings hit an accelerated peak near 650p from mid February and has entered a period of consolidation and mean reversion. It found at least short-term support near 500p three weeks ago and the medium-term upside can continue to be given the benefit of the doubt provided it holds above the 200-day MA which is currently near 425p and rising rapidly.

Broadcom Corp encountered resistance near the upper side of its decade long base in December and has pulled back to retest the progression of higher reaction lows from the 2008 nadir. If the medium-term uptrend is to remain comparatively consistent it will need to find support soon.

Back to top