#1 Apple Analyst: iPhone business is healthy

As Wall Street continues to grow pessimistic on Apple, Toni Sacconaghi of Sanford C. Bernstein remains optimistic.

"Fundamentally the iPhone business is healthy," Sacconaghi said on CNBC's "Halftime Report".

The top rated tech analyst said first-time smart phone users will drive iPhone sales.

"[Globally] only 60% of cell phones are smart. There are still a couple billion that will become smart phones," he said.

Sacconaghi believes Apple can attract new customers. "Apple is still able to gain share from other platforms and attract people."

Sacconaghi has an overweight rating and $135 price target on Apple.