All this is good news. And before investors panic, they should understand why the stock has fallen. The introduction of the cheaper iPad Mini, and growing competition in the tablet business, has caused a flurry of uncertainty. Fund managers hate uncertainty. They run from it, irrationally.
Furthermore, the looming “fiscal cliff” has caused a number of people to rush to cash in some of their enormous capital gains on Apple stock before taxes rise. That rush caused the stock to fall. Others, seeing the stock falling, rushed to cash in their capital gains … and so the cycle continued. It’s a stampede.
Is the current panic overdone? It wouldn’t be the first time.