Apple is not doomed! Four reasons why you shouldn't give up on the stock

It's not easy being a bull on Apple right now, given a comprehensively disappointing earnings report this week. With the company missing revenue and earnings expectations, the bears on

Apple understandably are having a field day exclaiming that they've been right the whole time; Apple is doomed. To be sure, there was little to be enthusiastic about after Apple's

latest earnings release and conference call. Importantly, Apple's biggest growth market, China, was a surprising disappointment, which further underscored the reality that China's

economy is struggling. Like many multinational companies, Apple's growth trajectory is significantly impacted by the state of Chinese consumption; Apple is not immune to macro

conditions impacting the Chinese consumer. Apple earnings pressure stocks ahead of Fed decision So where is the real hope in Apple's earnings call? This quarter's earnings provide

no silver lining and one instead must look past this quarter's earnings (and probably next quarter's results) to continue to be positive about Apple's prospects. Here are four

reasons why it isn't time to give up on Apple stock: 1. NEW LOWER-PRICED PHONES. While Apple iPhone sales declined for the first time, results do not reflect the new lower-priced

iPhone that will likely capture market share from competitors. While margins are lower on this product, it reflects Apple's understanding that scale must be combined with margins to

continue above-average profitability. 2. RESEARCH AND DEVELOPMENT continues to be a huge line item for Apple, suggesting that they are not simply banking on past products for future growth.

Rumors of an automotive program as well as augmented reality suggests Apple is not in denial that they need additional market segments to continue strong growth. This is the trough for

Apple; innovation engine is still there: Analyst 3. A HEALTHY PRODUCT MIX. Apple services, including cloud services, music offerings, and Apple Pay, are a recognition that services and

ongoing revenue are an important part of a healthy product mix. IBM recognized this 20 years ago when they shifted from hardware to services and Apple will need to shift their product mix if

they wish to negate the saturation problem with hardware that comes when channels become more mature. 4. APPLE IS STILL MASSIVELY PROFITABLE, pays a dividend, has huge cash reserves, and

built-in consumers for future upgrades. The game is not over for Apple and there have been many times this company has been counted out. It's easy to forget how dismissive many were of

the company's future prospects when Tim Cook became CEO. This time, it's understable, given the disappointing earnings report, but I think this is a huge overreaction. If you are

buying Apple stock as a short-term investment, you going to be in for a very bumpy ride. I was not surprised that this week's report was less than rosy and frankly I don't expect

the next two quarters to be terribly encouraging either. For that reason, it's pretty daunting to speculate on this name in the short-term. If, however, you are an Apple investor for

the long-term, look at this week's report with concern and analyze what future growth rates will look like. Assume a slowdown is occurring in core products. And when you factor in these

negatives, analyze the profitability of the company, its cash position, the current price-earnings and price-to-book multiples, and return on equity. You'll see that this company still

is incredibly strong financially despite this week's report. Buckle up: Stocks could drop 25% or more It's going to take patience as an Apple investor for the next six months.

Everyone's going to tell you that you've lost your mind staying with a once great company that is now in significant decline. Resist the temptation to believe the negativity. We

are not happy about this week's report but see plenty of reasons to be long-term bullish on Apple. There's still hope for the belief that Apple can continue to be a great candidate

to be a key part of a core portfolio strategy._ _ _Commentary by Michael A. Yoshikami, the CEO and founder of Destination Wealth Management in Walnut Creek, California. He is also a CNBC

contributor. Follow DWM on Twitter @DestinationWM._ _Disclosure: Michael Yoshikami does not own shares of Apple_ _and has no investment-banking relationships with the company. But

Destination Wealth Management may buy shares for clients._ _FOR MORE INSIGHT FROM CNBC CONTRIBUTORS, FOLLOW __@CNBCOPINION_ _ON TWITTER._