The iPad2 heightens concerns in the tablet market

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The advent of Apple's (AAPL) second version of the iPad, which went on sale Friday, has heightened concerns that the entire tablet industry may be swamped says Barron's Technology Trader columnist Tiernan Ray. JPMorgan's Mark Moskowitz report last week, warning that the market could see an oversupply of tablets to the tune of 36% this year, sent several stocks into a tailspin. These included: Motorola Mobility (MMI), which recently started selling its Xoom tablet, and ARM Holdings (ARMH), which licenses chip designs used in all of the tablets, including Apple's. Goldman Sachs' James Covello published a grim note Wednesday, warning that the entire chip industry may find itself out of whack this year, based, in part, on unrealistic assumptions about tablet sales. But, Raymond James' Hans Mosesmann last week said that many companies in the chip fray, including Nvidia (NVDA), have other revenue sources that will prevent any tablet-sales weakness this year from becoming a disaster. Ray still is in wait-and-see mode on the whole matter.

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