Valuation is a relative question. What if the valuation of the competitors come down? In the case of AAPL it is not only a matter of ralative valuation but the lack of innovation. The three types of IPAD sizes and the the IPAD in every color in the rainbow doesn't equal innovation. AAPL will only come screaming back when it gets back its innovation crown. Till then the stock will be sloppy to lower.