Is Apple Really Rotten to the Core?

In the video below, Fool analysts Jeremy Phillips and Austin Smith discuss Apple (AAPL 0.52%) and whether, after falling 30%, it's truly rotten to the core.

Apple's core is its great portfolio of products, and Austin thinks those products still command industry-leading margins. It's also in the company's ability to innovate. The new iPad mini is one of the best electronic devices Austin has ever owned.

That's why Apple's sales numbers continue to be up across the board.

So, Apple's absolutely not rotten to the core, Austin says.

Its fall differs from those at other one-time market darlings like Green Mountain Coffee Roasters (GMCR.DL) in that Apple has no significant worries like accounting concerns, he says. Green Mountain also posted numbers that justified a price drop.

Apple's fall was more similar to that of Netflix (NFLX 1.74%), which pulled back after a great run, only to later rally again. The core of the business never changed.

Apple's core remains intact. It still posts industry-topping margins, and the demand for its products has not diminished.