Apple stock just absorbed a sharp reality check, dropping about 7% to US$308.91 after the latest results, even though the quarter put fresh numbers behind the long running profit story. Revenue reached US$109.4b and earnings per share came in at about US$2.03, both tied to what management called a record June quarter.

The market focused on the hit to the share price today. Longer term investors will be watching something else: Apple’s margin profile, helped this time by tariff refunds and a Services engine that produced US$30.7b, now sits at the center of the valuation debate.

Love Apple’s record quarter and strong margins but worried about paying up when the valuation debate is this heated? Take a look at our hand picked list of 55…