This paper is devoted to the study of stability and reduction of the difference equation \[ x(t+1)=f(t,x(t)), \qquad (t\in \mathbb Z_{+}) \tag{1} \] on a Banach space. The main results are given in the following two theorems. Theorem (Linearized stability). If \(\phi^{*}\) is a permanent solution of equation (1) and the relations \[ \begin{aligned} & \sup\limits_{t\ge 0}\| Df(t,\phi^{*}(t))\| <\infty, \\ & \lim\limits_{u\to 0}\sup\limits_{t\ge 0} \| Df(t,\phi^{*}(t)+u)-Df(t,\phi^{*}(t))\|=0 \end{aligned}\tag{2} \] are satisfied (\(Df\) is derivative of \(f\) with respect to spatial variable), then the following holds: \begin{itemize} \item[1.] If \(\sum (\phi^{*}) \subset (0,1)\) (\(\sum (\phi^{*})\) is the dichotomy spectrum of solution \(\phi^{*}\)), then \(\phi^{*}\) is uniformly exponentially stable; \item[2.] If \((1,+\infty)\) contains a spectral interval of \(\sum (\phi^{*})\), then \(\phi^{*}\) is unstable. \end{itemize} Theorem (Reduction principle). Suppose that conditions (2) are satisfied and that condition (\(\sigma\)) (see the paper) holds on \(\mathbb Z\). A permanent solution \(\phi^{*}\) of (1) is (uniformly, asymptotically, uniformly asymptotically, uniformly exponentially) stable, or unstable, if and only if the zero solution of the reduced difference equation in the center-unstable vector bundle has the respective stability property. The authors give applications of the results obtained for several classes of difference equations.
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