If anything, perhaps the iPhone is still a bit over priced for many Chinese. However, remember in China the phone is the main form of Internet communication. So many will be willing to spend more for it.

Buyers are younger non-techies and techies who like unix-like environment and virtualization capabilities. Not a group of buyers at risk. If they're not buying a house, why not buy a computer?

Many business apps are moving to the web and away from Windows platforms because the software maintenance and support are so high. Firefox compatibility and solid web standards instead of Windows versioning can save a company (small or large) a lot of maintenance expense.

Finally, people do buy quality for a premium. Look at the BMWs, Lexuses, Acuras, etc, that take a person the same place as Chevys, Camrys, etc. People may step down from a BMW to a lower priced car as a major cap ex, but computers are now not cap ex for middle America.

Remember Apple's got about $25/share in the bank, and will clear another about $10 – $12 this year. They continue to grow far faster than the markets they operate in. Even in this environment the valuation will eventually reflect the fundamentals.

1. Apple makes nothing but overpriced toys with no business applications.

2. The Chinese won't pay full price for the iphone when they can get knockoffs for a third of the price.

3. A great set of books cannot create performance in a terrible consumer market.

No? I'd say a 300+ point drop in the Dow is reason enough.

Bottom line: Apple is still being sucked down by the larger market. I don't expect to see a significant turnaround in Apple until there is a corresponding turnaround in the market as a whole.

And that might not happen until February of '09 when the Obama Administration finally takes over, barring a complete policy surrender by the Bush Administration.

Not.

I'll never understand the foolish gyrations of AAPL sellers.

I'm in for the long haul. Jittery investors silly enough to sell at $92 when one analyst lowers his price target to $235 in the coming year (note: a 100%+ gain over current prices) deserve to miss out on big gains.