Today Apple announced a very impressive array of new software and hardware. Apple's hardware products are now state-of-the-art across the board, with new and faster processors, retina displays, lighter weight, and refined design. Apple now produces the best smartphones, tablets, laptops, desktops, and professional workstations in the world, at least in my humble opinion. At the same time, Apple has refreshed its entire software lineup, and taken the bold step of making all the new software free and accessible to just about everyone with an Apple device.
Perhaps most impressive of all is the enhanced integration of all the new Apple products and Apple software. It's an ecosystem consisting of 1 million apps for iPhones and iPads, plus Apple productivity software—movie and photo editing, word processing and document creation, spreadsheets, presentations, and music creation, all working together via the cloud and across all devices—that no competitor can come even close to matching.
We're still waiting for the Next Big Thing from Apple, whatever it may be, but in the meantime Apple has made giant strides on the software and hardware front. It's the breadth and depth of Apple's offerings, their quality and attention to detail, all combined with their virtually seamless integration, that is the true innovation that was on display today.
I just don't see the bearish case for this incredible company that is trading today with a PE of 13 (make that 10.5-11 if Apple were to repatriate its foreign profits and distribute the resulting after-tax cash).
Full disclosure: I am long AAPL at the time of this writing.