Apple's New iPod

Will it matter for investors?

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As Apple ( AAPL) gears up for the expected release of an updated iPod, investors are chattering that the hype surrounding Apple shares might be setting the stage for a letdown.

Not everyone thinks so: Forbes's Brian Caulfield outlines "Why Apple Doesnt Need the iPod." The answer: Selling content is finally becoming the driver for the company, even as sales of its iconic music player slow.

Apple's thriving digital content business gives Steve Jobs & Co. plenty of room to slash the price of the iPod to keep digital music and movie sales growing, and to use the company's increasingly powerful digital content business as a way to segue into sales of tablet computers and other gizmos, as it has with the iPhone.

At Seeking Alpha, Lone Pine Asset Management's Jason Schwarz offers "Six Reasons Why Apples Still a Buy":

1) The Steve Jobs health debate is coming to an end.

2) Investors have figured out that the P/E method of valuing Apple stock is not accurate. Accuracy will be restored as investors focus on P/Free Cash Flow ( link).

3) Seasonality is on Apple's side. For the past three years, Apple stock has averaged a 45% return between now and the holidays. This is Apple's time to break through the $200 barrier.

4) International iPhone sales will be boosted from distribution deals in Russia and China. The iPhone will replace laptop computers in many emerging markets.

5) Microsoft ( MSFT) will continue to lose market share to Apple ( link). Mac sales could reach 3 million in the current quarter.

6) Apple's new game plan of gaining market share over margins ( link) will begin to play itself out after Tuesday's event. This company is at a positive tipping point.