Show me a company with the same margins as Apple with their low PE and at this low stock price?
If Apple came out with a cheaper iPhone to compete in other countries as China , India , whatever ,,
It would do just fine and sell hundreds of millions of them,
Just do it Tim and have it ready for Xmas
there are plenty of companies with thinner margin and yet higher PE and share price but in other industries,
You have to compare apple with apple,these companies in other industries make products which do not get dated or obsolete as fast as electronic goods,.good examples would be aircraft,heavy equipments used in construction,drilling,mining,automobiles,and on the lighter side,handbags ,yes,your mother can carry the same handbag for 10 years and looks fine .
think what happens to the polaroid camera,the clunky fax machine,the external HAYES modem
you connect with your PC ,the ticker tape and more,you get the picture.
Not that AAPL is going the way of the Polaroid camera,but people are afraid its products are turning into commodities and should be priced as commodity .