The market has put too much emphasis on Apple launches, casting a shadow over the real story, analyst Daniel Ernst said Thursday, a day after investors dissed the company's announcement of product updates.
That story is consistent and significant innovation, the buy side analyst told CNBC's "Squawk Box."
"While everyone always expects them to come up with something groundbreaking and new, my contention is Apple is still among the most innovative tech companies on the planet because they do something that I call economic innovation. And by that I mean they produce products and technologies out of innovation that generate real revenues and real profits," said the Welch Capital Partners analyst.
On Wednesday Apple unveiled updates to some of its most popular products, including faster, more powerful iPhones; a larger iPad geared toward professionals; and gaming and voice-activation features for Apple TV.
The launch failed to excite investors, who sent the stock down about 2 percent in after hours trading. By Thursday afternoon, shares reversed those losses and were trading about 2 percent higher, at $112.60. (Click here for the latest price.)
Ernst cautioned that stock volatility and Apple product debuts go hand in hand.
"When Steve [Jobs] was here, it used to go down 10 percent because they'd always expect him to walk on water," he said. "[Tim] Cook has actually moderated the volatility in the stock."
Shares of Apple are trading at 12 times forward earnings with compound annual earnings growth of 31 percent, Ernst said. That compares with a price-to-earnings ratio of 16 and 7 percent growth for the S&P 500, setting up a value opportunity for shares of Apple, he added.