Apple investors are heading for the exits after the company reported earnings, but this might be an entry opportunity for patient bulls, TheStreet TV Rhonda Schaffler reports in the above video.

Updated from 9:28 a.m. EDT

NEW YORK (TheStreet) -- Apple (AAPL) - Get Report stock is down by 6.29% to $97.79 on heavy trading volume this afternoon, as Wall Street reacts to the iPhone maker's first quarterly revenue decline since 2003 and first-ever drop in iPhone sales. 

After yesterday's market close, Apple announced that second-quarter revenue declined by 13% year-over-year to $50.6 billion. Analysts were looking for $52 billion.

The company was hurt as revenue declined by 26% year-over-year in China, its biggest market after the U.S. Apple expects that the third quarter sales will tumble further, and has forecast for revenue between $41 billion and $43 billion for the period. Wall Street is looking for revenue of $47.4 billion, according to Bloomberg.

iPhone shipments fell by 16% year-over-year to 51.2 million in the most recent period, down from 61.2 million in the year-ago period. 

"What I think happened is that Apple was on steroids, but wasn't conscious of it," TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUScharitable trust portfolio, wrote in a Real Moneyarticle. "The growth in China last year turned out to be totally unsustainable and that really masked a rather ho-hum performance."

Following Apple's earnings, at least 12 firms reduced their price targets on the stock and Oppenheimer cut its rating to "perform" from "outperform."

Goldman Sachs (GS) removed the company from its "conviction buy" list but maintained its "buy" rating on the stock.

Goldman Sachs is disappointed in Apple's second quarter and third-quarter forecast, which will likely result in near-term weakness in shares. However, the firm is encouraged as Apple's iPhone installed base is up 18% from two years ago and its reported services growth has accelerated to 20% year-over-year. 

(Apple is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.

Apple's strengths such as its revenue growth, notable return on equity, expanding profit margins, increase in net income and growth in earnings per share outweigh the fact that the company shows weak operating cash flow.

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

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 article's author.

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