why both bulls and bears are wrong on Apple

There are strong arguments for both bears and bulls on Apple. But unfortunately, they are both wrong.
The bulls arguments are Apple can continue current margin and keep the growth rate. They project that Iphone is going to have a run rate over 300 million units and Ipad over 120 million. The Itv is going to be a big winner.

The bears think that there is no way Apple can sustain IPhone at 150 million units, Ipad at 70 million and the competition will sure bring the margin down. When this happens, Apple will become another Nokia or Cisco.

I do agree that the Iphone and Ipad can not sustain the margin and 20% growth rate for long (at most another 2 years). However, the App. store will become a stable revenue source. Currently, Apple get 70% revenue without costs. eventually, I see total app sales of 10-20 billion annually which translate 7-14 billion profit. I think in 3-5 years, Apple should have eps at 50-60 dollar. given its cash position, the stock should trade around 650 to 800.