The stock remains technically weak and continues to trade below short term averages (200 DMA of $540 and 50 DMA of 448). Considering the magnitude and momentum of the fall over last 5-6 months, all these levels become difficult hurdles to cross. News of increased competition leading to declining growth indicates that the fundamental news is not likely to provide support. What is likely is that at some point, maybe close to current levels, the gloom may start to factor a little too much. Once the future possibilities of declining growth etc. are totally factored by the market, a long period of consolidation should follow. Mind you, days of meteoric rise in AAPL stock may be over. The dividend yields may increase, and in view of the activism of investors (Greenlight ruling etc.), it may consider better dividends, buybacks etc. On the fundamental front what it is avoiding to do is reduce prices or bring out a low price model for the emerging markets. It wants to remain a niche product, and perhaps lessons from history, like Harley Davidson (HOG) support the resolve. Decades ago, HOG tried to copy the Japanese bikes when it lost out to them on cost and efficiency, However, it ultimately failed at that. It succeeded only after it tried to sell bikes based on its niche and cult status. Of course it has worked hard on manufacturing and operational efficiency, but it ultimately it was the magic of brand power. Frankly, there is no guarantee that a cheaper iPhone will succeed. It may be a case of severe dilution of brand power which may kill Apple's most potent weapon, brand image. Apple, which is fighting on the sales front, also has to worry about patent lawsuit battles. Patent monetization is presently very popular e.g. MGT Capital Investment (MGT), Marathon Group (MARA), Document Security System (DSS) etc., and even innocent violations can cost it money. Let us see how it manages the future. Perhaps, the best way forward is ultra-innovative products.