Apple Inc (AAPL)

[langostino]

Macs 'n profits


Tex, FWIW, iPod revenue has already reached the tipping point, and now is in DECLINE. (That's right - "Negative" growth).

When 40% of your revenue stream goes from 100+% annual growth rate to ZERO or negative, the other 60% had better be experiencing ACCELERATING growth rates, and/or you'd better have new revenue streams coming to market, equal to or greater than the portion of the revenue stream that just hit the skids ... just to maintain the sort of p/e multiples accorded. Otherwise, as we're seeing, it's margin compression time.