Apple's quarterly earnings were very impressive: revenue up 27%, profit up 33% to $13.6 billion. Those are extremely impressive numbers and demonstrates that Apple doesn't suffer from the Law of Large Numbers yet. Growth is mostly due to the 71% increase in sales in China. Gross margin for this juggernaut is a very healthy 40%.

Apple sits on a phenomenal cash pile of around $173 billion. Wall Street Journal reports that the cash pile is greater than the market capitalisation of all but 15 other companies on the S&P 500. Being a dividend guy, I love the fact that they will pay a 11% increase in dividends.

However, I'm very lukewarm on the $140 billion share buyback, especially when the share hovers at an all time high. I'd rather they pay out a special dividend, even if it's less tax efficient for shareholders. Share buybacks are better left to times when the stock price yields a below average historical price-earnings multiple. Although at 17, Apple's P/E is not expensive, but a few years ago it was trading at a P/E around 13.

Unlike the Wall Street Analysts, I'm unconcerned about the slow down in iPad sales. Sales of the iPhone are much more important. You don't carry an iPad everywhere you go, but you do tend to carry a phone everywhere. And with the larger 6 Plus screen, that could have been a substitute for the iPad anyway. As these consumer tech companies build out their capability, it's going to be more about buying into an ecosystem rather than an individual device.

I think there's plenty of other categories where Apple can grow. I think I'll remain a happy holder as long as Jony Ive remains at the design helm. He was the reason I held on after the passing of Steve Jobs. Glad I did.