Analysts are generally enthusiastic about Apple’s iPhone price cut, even while the Apple stock price has declined and investors have been trying to figure out what to make of the cut, according to Barron’s on Thursday.

Most analysts approve of the price cut, citing increased sales as the result. However, decreased margins have worried investors.

"...while investor reaction to the iPhone price cut could be negative near-term, we believe unit demand will be stimulated and the jury is still out," said Ben Reitzes of UBS.

The cut is "a reflection on Apple�s desires to be a legitimate player in the mobile handset market within 1-2 years vs. our previous expectation of 2-3 years," said Gene Munster. He repeated his Outperform rating.

Mike Abramsky at RBC thought the price cut was early in the sales cycle and mentioned that Apple woud have to move quickly to avoid alienating customers. [They have.] He also maintained his Outperform rating.

Many other analysts weighed in, and Andy Hargreaves of Pacific Crest raised his estimate of the number of iPhones Apple will sell in Ficsal 2008 from 8.2 to 9.5 million as a result of the cut.

So while Apple has taken a big hit in market cap, investors who listen to the analysts will hear them report that increased sales and market share in the long run will benefit Apple.