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AAPL data by YCharts So what was the cause of the stock price decline even though it was in a super cycle?

The most recent 10-K (emphasis added) shows that Apple has committed $37.6B in non-cancelable arrangements.

Manufacturing Purchase Obligations – The Company utilizes several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products.

First, with i Phone 6 and 6s cycle, while the units did grow, the ASP (average selling price) did not.

By calling out this outsize “purchase obligations” in the 10-K, my take is that Apple is expecting another super cycle.

However, Apple has figured out that by adding features that customers really care about, they can increase the ASP.

They first test marketed the ASP increase with i Phone 7-Plus (was $30 more than previous generation i Phone 6s-Plus); 7-Plus had a superior camera, and more customers opted for that than the cheaper 7, leading to a rise in overall ASP.

These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days The Company also obtains individual components for its products from a wide variety of individual suppliers.