Apple recently published a good report for the Q4 and 12 months of 2013 fiscal year. Q4 revenue increased by 4.2% y/y, exceeding expectations by 1.7%. Quarterly net income declined by 8.6% y/y, but it beat expectations by 4.1%. Sales in China (+24% q/q, +6% y/y) and Japan (+31% q/q, +41% y/y) grew faster than elsewhere. In addition, the iPhone segment was the most rapidly growing revenue component (+8%q/q, +26% y/y). We believe that the company's sales growth in the medium term will continue, primarily due to the Asian market, a slight decrease in margin is temporary. Management pins high hopes on the signing of an agreement with China Mobile, the largest telecom operator of the China, which is expected at the end of the current year. In addition, it should be noted that the company generates a significant amount of cash. The media recently reported a decision of the Board of Directors to pay out quarterly dividend of $3.05 per share, which implies a 2.2% yield (a year ago the company announced plans to spend about $45 bn on dividends and purchase of shares in 2013-2015). Higher dividends and a buyback option will help shore up the company’s share prices in the medium term. Our medium-term fundamental valuation of Apple (AAPL) shares is $580. Short-term goal is $570.