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Market Update

Apple's Momentum Unstoppable

The firm cemented its competitive and technological leads with the new iPad, says Morningstar's Michael Holt.

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The new iPad was unveiled Wednesday at  Apple's (AAPL) highly anticipated launch event. Key hardware upgrades and a familiar price point positions the iPad as an attractive successor to the very successful iPad 2. More importantly, however, it cements Apple's technological lead over the tablet competition at a critical point in time for the emerging tablet market.

The new iPad boasts upgrades, including a sharper screen, faster data connectivity, a more powerful processor, and a higher-quality camera. These upgrades, especially the higher-resolution screen, are features that we expect will resonate with mainstream consumers. In the smartphone market, Android phones have largely closed the technological gap with the iPhone. In contrast, we believe the new iPad cements Apple's technological advantage over the tablet competition for the foreseeable future.

Michael Holt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.