Why is anybody surprised by the stock tanking?
The market is rightfully spooked. First, the falling margins. Next, and more importantly, most of Apple's earnings come from iPhone sales. And iPhone sales missed. Investors trade on forward earnings. And many suspect that Apple may be starting to see stiff competition finally, possibly driving both sales and margins lower. Man, if I knew the numbers would have been this bad, I would have shorted the stock. This fear of competition is exactly why Apple's PE has always been lower than you would expect. People compare Apple to Amazon and GE. If you do that, you are thinking like a fanboy and not an investor. As an investor, you should be scared of a company dependent on one product which they launch once a year, and which is starting to face growing headwinds, and running out of new markets to exploit (as in places where people can afford $800 iPhones). Amazon and GE are substantially more diversified, strong in multiple markets and don't yet have major competition that could kill their earnings with just one bad product launch. This risk is why investors discount the stock.
Crying about how markets are failing and capitalism is just fanboy drivel from those who don't understand how markets work and what drives investor sentiment.
Now, I've bought AAPL and suffered a bit of a hit on paper, but for me, it's one stock in my portfolio and I don't day trade. I've bought those shares and they'll be in there till I die or Apple does. I know Apple will eventually transition to a stable blue chip paying solid dividends, rather than a growth company sitting on more money than God.
But for me, my new growth stock is TSLA. Musk might actually be even more of a visionary than Jobs. The guy has actually taken 3 companies to billion dollar valuations from virtually nothing. And all in markets where he would face remarkable and entrenched resistance.
Refresh my memory. How many products does Tesla sell?