A competitive advantage is really only a competitive advantage when it is sustainable -- that is, when customerscontinue over time to prefer a company's products or services versus that of competitors. Is Apple's competitive advantage sustainable 5 or 10 or 20 years from now? If yes, why? If not, what must they do to preserve a competitive advantage over the long term?
Let's assume that you are currently not an investor in Apple but that you are considering it. When you invest, you like to invest for the long term, and you want to make sure that you invest in companies that have a sustainable competitive advantage so that you can feel reasonably confident about future earnings. I'm giving each of you $100,000 to either (a) invest in Apple stock, or (b) keep the money and spend it elsewhere. (Sorry, I'm not really giving you the money, but let's pretend). Would you invest your $100,00 in Apple stock? Why or why not? Let's make it all-or-none. Either you invest theentire hundred grand in Apple stock, or nothing!
Make sure you clearly justify your choice of whether or not to invest in Apple. What you "feel" or "believe" is not relevant. Base your decision on facts and analysis, not an unsupported opinion.