I agree with this part:
It should be blatantly obvious to anyone with half a brain that there's going to be a lot less income from hardware sales due to competition. That same competition will also decrease AM's share of the network hash rate.
However, I believe most investors have considered it too (particularly those with more than "half a brain"), and that it is priced into the share price at the moment. There's no surprise that there will be competition. But AM has enormous competitive advantages - they won't be able to sell at 50 BTC anymore, but their process (130 nm) is most likely cheaper than all competitors, giving them better profit margins on their products.
So the current monopoly-situation will eventually end, but AM has everything it takes to compete head-on with the competitors (and win) when they eventually arrive.
More compentition doesnt necesary lead to reduced hardware profits for ASICminer..
You asume that there wont be enough demand to buy every competitive product that comes out
its like you say if AM sold 1000 blades then the market is 1000 minners a pop i think the demand was much larger than what AM could cover and could absorve more mners than were actualy sold...
A competative market with lower prices and easier revenuew of buying Miners would drive the sales way up for AM too...
plus you asume that the cost of production of the second batch is the same as the first i would argue that the first batch had to cover a lot or development costs that the second one will not have thus giving a larger profit margin...
In all that i am not sure that we have reached peak profits from hardware sales yet even if there is lots of competition in the future...