Apple's earnings are decent. The issue is that there remains worry about their losing market share and increasing dependence on cell phone side sales, although good for margins and better than nothing only reveals the level of dependence they have on cell phones. The issue for Apple is now, what's next? Sure watches are a little add to profitability but it is not enough to offset cell phones and is once again dependent on cell phones.

Apple's valuation is good given its its current profitability. It is a decent buy if they can show convincing arguments that it will indeed remain as profitable as it is today. Their CEO has done wonders to keep Apple on track financially as the company just continues to incrementally upgrade their products from existing technology rather than sparking any major tech revolution since Jobs passed away.