When you back out the cash, the PE is below 6. The stock and company are not in correlation. As with any stock, in due time they will be. There are few sellers, and the people who want to buy are too scared due to the repeated bashing by media heads, etc. As a result, it bleeds a few dollars every day.
No, no it won't. Sales are growing. I think the market is just taking Apple down until management shows a sign that it gives a #$%$. At some point Cook and co. will realize that being total tightwads holding on to every penny of $137B is causing a PR nightmare and giving a little back to the shareholders is not a bad idea.