What's going on?

On a day when it looked like Apple�s stock was going to get absolutely clobbered (it was down 13% when the market opened), a letter from its CEO, Tim Cook, reassured investors and the stock rebounded to close down by �only� 2.5%.

What does this mean?

In a letter to CNBC�s Jim Cramer, Cook said that Apple continued to experience strong growth in China in July and August. As we highlighted last month, Apple�s stock sold off 5% on the day it reported disappointing iPhone sales in China. In all, the stock is off more than�20% from its recent peak in July. By reassuring investors of its growth prospects in China � perhaps just affirming that its not facing a meltdown in Chinese demand � Cook seemed to somewhat stabilize Apple�s fall yesterday.

Why should I care?

1. A 20% drop in a month is a HUGE move for the world�s biggest company. As always, it�s virtually impossible to pinpoint a bottom in price, but with analyst expectations now lowered, even moderate growth could move the stock higher.
2. Cook reiterated his view that China presents �an unprecedented opportunity over the long term� due to low penetration of smartphones and a growing middle class. If Apple can capitalize on this, it will be positive for the stock in the long term.