Apple is neither software nor a hardware company.
I'm not sure many would agree with you on that. Apple has always been a hardware company. Just because their software drives their hardware doesn't mean they are software focused. If they were primarily a software company, they would have gone the way of Microsoft and put out MacOS to run on any generic PC box. But we all know their take on that. Just to drive my point home, when was the last time Apple released a piece of software that people went nuts about and stood in lines for hours to get?
The iPad 2? Do you really think it just he hardware?
I am going out on a limb here and say you are both wrong. Hardware. Software. Hardware. Software.
The truth is Apple is neither a hardware nor a software company. They are what we in engineering call a Systems Company. A systems company is a company that designs both the hardware and software of disconnected devices. A systems integrator is a company that designs systems of disconnected devices without actually designing the hardware or software. A company like Boeing is a systems integrator. They do not actually build many of the piece parts and write little, if any, of the software on planes like the 787, they simply assemble systems delivered by various vendors. Dell is a systems integrator.
Apple, on the other hand, designs the software in the form of OS X, iOS, XCode, Aperture, iPod OS... and they do design the hardware in the form of custom ASICS for memory controllers, the Apple A4/A5, batteries, cases, specify screens (retina is not COTS) and so on.
They also design protocols for communications like AirPlay, FaceTime, Bojour and so on. These are the pieces to put the individual parts together. This is what makes Apple one of the few system companies left in the world. This is what gives Apple their competitive advantage. This is what makes Apple so amazingly hard to duplicate. Apple's primary competitive advantage is most higher-ups simply do not know what a systems company is. It is a lost art in companies leaving the crazies of the Jack Welsh school of management scratching their head.