For Apple, do you regard its valuations to be excessive right now?

A lot will depend on how Apple continues its ecosystem dominance.

They are well known for killing off their products in order to set the standard for the next wave. The iPod was replaced by the iPod touch was replaced by the iPhone.

So a lot depends on how they execute the next wave of whatever they have in mind. Apple has always been very strong in execution and tying everything seamlessly, so

if they can continue this streak, the stock will continue to climb. Tim Cook is no Steve Jobs, so some day they will have to find someone just as visionary. Frankly I'm a little sad Jobs passed on, as he has the ability to innovate two or three generations ahead. Would have been interesting to see what direction and products Apple would have taken if he was still around.

Hey Kelvin, really interesting question! Apple currently has a PE ratio of around 23, which seems high at first glance. I own shares, so take my response with a ladle of salt =)

I think the wild card will be the growth of Apple's services business. Not many realise just how massive the services business of Apple is. It has 420 million paid subscribers, and has trailing revenue of more than US$40 billion. For context, Facebook's revenue is US$66 billion. Apple's services business also has a much fatter gross profit margin (60+%) compared to its hardware business. If Apple continues to grow its services business, the market may be more than happy to continue awarding the company a high earnings multiple, since this services business is very sticky with high levels of recurring revenue.

Apple's wearables business is also worth keeping an eye on. I believe that the Apple Watch, which includes an electrocardiogram (ECG) function, could become an actual healthcare devices - in other words, the Apple Watch could become a need more than a want.

I'm well aware that the iPhone business of Apple is now stagnating. But the services business and wearables business are two bright spots. Even if iPhone sales stop growing from this point on, services and wearables could carry the day for Apple.