Shulou(Shulou.com)06/02 Report--

According to Yahoo Finance Beijing time on January 5, as Apple's share price slowly recovers from the slump triggered by falling revenue in China, one analyst pointed out that based on Apple's strong fundamentals, people should be more optimistic about the technology giant.

Gene Munster, a senior technology analyst at Loup Ventures, an investment bank, remains bullish on Apple's share price: "the simple reason is that Apple's fundamentals and competitive posture have not changed."

Apple shares rebounded more than 3% in intraday trading on Friday. Munster believes that "there is a disconnect between Apple's fundamentals and the headlines," as the company is about to release its highest quarterly results in its history.

Apple CEO Tim Tim Cook said in a letter to investors on Wednesday that iPhone sales in China had fallen, but Apple's revenues in developed countries such as the US, Canada, Germany, Italy, Spain, the Netherlands and South Korea were expected to "set records".

Cook also wrote that apple's non-iPhone revenue rose 19% year-on-year, with record revenue from services, wearable products and Mac.

Thursday was arguably one of the darkest days in apple's history (shares tumbled 10%), but Munster believes that under cook's leadership, concerns about falling sales in china may soon subside.

"Cash from expected earnings is something that Cook can control, and he can use it to stimulate the stock price," Mr. Munster said. "people may not believe it now, but Apple is actually doing a really good job."

He added that Apple would eventually be the best performer in FAANG shares, noting that other companies such as Amazon and Google could face regulatory pressure.

Other analysts are less optimistic about Apple, pointing to signs of declining user loyalty, high iPhone prices and increasing competition from Chinese smartphone makers.

To cope with the fierce competition, Apple has launched a promotion program that allows consumers to exchange Android phones for points and then buy iPhone.

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