NEW YORK (TheStreet) -- Apple (AAPL) - Get Report is not a "one-trick pony" in regards to its iPhone, Apple shareholder and Albion Financial CIO Jason Ware argued on CNBC's "Power Lunch" on Wednesday afternoon. His comments comes after Apple posted its first decline in annual revenue and profits since 2001.

After Tuesday's closing bell, the tech giant reported earnings of $1.67 per share, topping analysts' expectations of $1.66 per share. Revenue came in at $46.9 billion, which was in line with analysts' estimates.

"It certainly is reliant on iPhone," Ware admitted. While that's a problem in the long-term, it's fine for now, Ware said. 

"While we're still in this pertty strong smartphone cycle globally, the opportunity globally to penetrate more of the smartphone market is still there for Apple," he claimed. 

Investors should realize that the iPhone is the "anchor product" for Apple that is enabling it to sell more software and services, which grew by 24% in this past quarter, Ware noted. 

While the iPhone market is saturated in the U.S., there are still countries like India and China where a lot of people don't have an iPhone yet, he said. 

The firm is excited about the 10th-anniversary edition of the iPhone that's expected to be released next year, saying it will be "quite a change," Ware pointed out.

Going forward, Apple will probably be investing in content or autmobiles or the next "-must-have product," in addition to artificial intelligence and virtual reality, he said. Apple will certainly continue to innovate, he claimed. 

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"If you follow the money in R&D spent, one can argue that given the execution of the past from Apple and given the solid management team, it's not something I want to bet against. I think they're going to be where they need to be," he concluded. 

Shares of Apple were lower in late afternoon trading on Wednesday. 

(Apple is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Apple as a Buy with a ratings score of B+. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

You can view the full analysis from the report here: AAPL

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