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Why isn't their P/E higher? Are all the institutional investors maxed out on how much Apple they can buy?

With a $1T valuation and a shrinking stock market as a whole that's not an unreasonable explanation.

Because they don't have flying cars of course :-P

In all seriousness though, 20 is not a low P/E. It's just that AMZN's 170 P/E is very, very high. Facebook and Google are in their 20s I believe.

If AAPL were trading at 10x or 12x earnings, that would be low, but still not insanely low.

Google's P/E is in the 50s, just like Microsoft. Facebook is 28. Pretty much every successful tech stock is way more expensive than Apple.