AAPL is Deflating

Unless you bought Apple stock before Valentine’s Day this year, you are now underwater. In what must be the best evidence of how quickly a liquidity-fueled over-owned bucket of over-optimistic extrapolation can see sentiment swing violently against it, AAPL just plunged back (on heavy volume) through its previous “generational low” from 11/16/12. At under $505.75 ($505.58), AAPL is at its lowest level since mid-February and is almost 30% off its highs on 9/21/12. Zero Hedge.

I think 2013 will be a difficult year for Apple if they keep the 4-4S-5 design tradition. Slight improvement of old design won’t cut it anymore. 1.) S3 size proved very popular. 2.) HTC has fit a 5″ screen into approximately S3 chasis. 3.) Everybody is rumored to have 5″ models. HTC, Sony, Samsung. 4.) 5″ 1080p screen is hard to make and in limited supply, so Apple can’t simply make 20 million a quarter 5″ screen if they decide to jump.

I would be surprised if Apple can hold on against Sony and LG if both goes high end.

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