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You are mostly right. That is a good reason for the multiple contraction (lowering of P/E ratio) for AAPL. Does it deserve a P/E like it used to have (between 30 and 40)? Heck no. It also doesn't deserve a valuation as low as it was recently (< 10-ish).
However, Apple recently opened sales to more of the world. China is a great unknown. Buick sold more cars in China than the US starting around 1999. Who'd have guessed that would happen?
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