This is the problem that I have right now with the valuation of Apple as a company. If the smartphones have already reached near commoditization stage already can they continue to get large margins for their products which is the basis for their high valuation. People will talk about Apple being cheap on a P/E ratio basis or EV/EBITDA basis but they are not cheap at all on a P/S or P/B basis and I think that has to give you pause as an investor. Further pause will come from the fact that Steve Jobs is dead and the new guy looks like he is not a Jobs like visionary. They can't maintain their margins without ongoing innovation and new product development. I know Apple wants to crack TV but that has been commoditized long ago and most of the strength really lies with the content makers and not the content displayers or the content distributors. With Apple, Google, Amazon and Netflix all working on this one it is hard to believe there will be high margins on the end products. If I were a major Apple shareholder (I own some but not a lot) I'd be wanting money back from them as dividends before they waste it on something. As disclosure I own Apple stock but buy Samsung products.