[PaulHoule]

So far as the stock value is concerned, Apple's peak stock value assumed a continued high rate of growth.

I don't know if that's possible.

In the last few years, Apple dominated (practically created) two product categories: digital music players and smartphones.

If Apple is going to keep growing like this it needs something bigger than the iPhone. What's it gonna be? An iTV? An iCar, a complete line of iKitchen appliances? A Buckminister Fuller-style iHouse?

I just don't see how they can find an opportunity like that without losing focus.

[mikeash]

Did it assume growth, though? Even at its peak, their P/E ratio was similar to companies like Microsoft, GE, and IBM. If they just sustained their current profitability they'd still be well worth the peak price and more. One can certainly make arguments about whether they can even sustain, but that peak price didn't require continuing levels of growth similar to the 2007-2012 period.