Too much Apple hatred

While the consensus doesn't believe in the tech giant anymore, what's the truth?

By Jim Cramer Jul 24, 2013 9:39AM

thestreet logoWhen the consensus speaks, it sure is hard to argue with it. Tuesday night, the consensus on the Apple (AAPL) call was this: No matter how the company spins it, there is a saturation of high-end phones. Even though Apple sold a monstrous 31.3 million iPhones -- about 5 million more than anyone was looking for -- it doesn't matter. The consensus holds that the market isn't growing anymore.

 

In fact, the additional phones, at least according to the analysts, are the "wrong" phones -- because many are iPhone 4 and 4s models, and that's not the Apple way. This company is supposed to only sell brand-new phones, and the trade-down and starter-phone gambit is something the other guys do, not Apple. It's worse. The consensus believes -- even as Apple's gross margins have stayed steadier than most had thought -- that Apple product is now cannibalizing and that the iPhone 5 isn't "good enough" to entice new buyers.

In other words, the consensus has spoken, and Apple doesn't have it anymore. The imagination, the excitement and the new-product glow are all finished -- because the old products, the Steve Jobs products, are now overshadowing the Tim Cook products. Unless that changes -- and the consensus sure doesn't believe that's possible -- Apple is a low- to no-growth company that you don't really have to pay attention to anymore.

 

Not only that, but the consensus doesn't like where Apple sells its product. Apple's blowing the doors off sales in Russia and India, the U.K., Turkey, Poland and many Asian countries, and it's doing some incredible sales, of course, in the U.S. But all that means nothing.


iphoneThe only sales that matter are from China, and China -- well -- it isn't Apple's strong suit. Oh, sure, Apple sells a lot of tablets there. The consensus has to acknowledge that, because how else could China be generating 14% of sales? But you can tell the consensus wants to see double or triple that before the jackal-led think-pack is satisfied. You could tell by the tone that the consensus isn't happy with the "Arc of time" opportunity that Tim Cook has traced out about China, because the analysts want Chinese growth here and now. It's almost as if a Chinese phone sale is worth two or three phone sales in India -- something that I am sure the Indians aren't too crazy about!


Oh, and did the consensus ever bury the iPad tablet as a new product. If you listened to this call you would have thought an iPad sale is nothing but a sale of a Sony Trinitorn television or, worse, a Zenith -- and that Zenith TVs are kind of giveaways that don't matter anymore. Between the sales of the iPhone 4 that cannibalize, and the declining tablet sales, you can only surmise that Apple's doing nothing right and is on its last legs.

What's the truth? Well, how about this? The consensus hates Apple too much. It is tired of Apple telling it how it is doing, and it is now telling Apple how the consensus thinks it is doing. There's only one problem: The stock market doesn't seem to care either way. Information technology is not doing as well as Apple says it is, and it is not as bad as the analysts say either. It's just that the balance of power has shifted, and that makes for some pretty depressing reading until new products come out and the discourse changes to the positive -- and, with it, the longer-term trajectory of the stock. That's unless, of course, the consensus is right and there is no "there" there -- at least not any longer.

 

Cramer

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long AAPL.

 

 

 

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58Comments
Jul 24, 2013 10:45AM
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most analysts sounds like crying babies and following the herd mentality...are they experts...not so sure.
Jul 24, 2013 10:52AM
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Now I would have thought i-phone 4 sales prove that the market is expanding for Apple as that would be the first i-phone to buy by a person finally stepping up to a smart phone or tired of their low cost droid,  repeat apple buyers would not buying an older model.  This to me means a great and growing installed base ready to upgrade in the future to a higher apple feature phone (i-4 is not upgradeable to ios-7)   in the future.  It seems to me new entries to the smart phone market are wanting the apple eco system which further indicates the superior positioning of the eco system and devices they are roadmapping out.
Jul 24, 2013 12:57PM
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They should have to rename Apple Mandarine Orange .......... just another rip off Chinese company.
Jul 24, 2013 4:28PM
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Political site ?? ........ I thought this was an entertainment rag......  You know Brent and Jill went up the hill....
Jul 24, 2013 4:48PM
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How can Little Beaver resist coming on here to tell us how he soaked up a few thousand shares of Facebook right before the meteoric rise? ....... that Jill must be something.

Jul 24, 2013 12:41PM
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Jim, the Apple haters will never go away. Some people will just be idiots all their lives.
Jul 24, 2013 11:40AM
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Hey Cramer, on it's last legs Apple is up 6%.
Jul 24, 2013 1:48PM
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Anyone surprised? The worst president for American businesses, the worst president for the US economy, the worst president ever for the American people is once again campaigning, babbling, lying his behind off as usual and of course the market is tanking....No surprise at all; just made our jobs so much harder for this afternoon....Sad
Jul 24, 2013 4:34PM
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This a phuctard site, thought everyone new that by now..

 

The only financial stuff that many understand is spoon-fed shidt from CGT...

Jul 24, 2013 10:47AM
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I don't know enough about Apple to know what they may or may not have in the pipeline.  They had an epic run in the last few years of Steve Jobs' life, with the iPod, iPad and iPhone all coming out within a couple of years.  Not sure what they are working on now - maybe something to compete with Google glasses?  Maybe the flexible screen tech, where laptops and iPads can be rolled up?  Maybe an iTV?  Hopefully the drive for innovation didn't die when Steve did...

As far as the iPhone goes, as long as Apple keeps re-inventing them and coming out with a new version, people will keep buying them.  This is particularly true if the new plans by the providers allow you to get a new phone every year instead of every two years.  I was in a Verizon store a few weeks ago and the place was packed in the middle of the afternoon on a weekday - most of the people I saw were getting new phones.  No one was hanging around the self-pay kiosks, everyone was standing in line waiting to get their new phone activated and have all their contact info transferred over.

Jul 24, 2013 4:16PM
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Facebook going nuts aft. hours....Up about 18% near $5, hadn't even reported yet.

 

Didn't get any PSXP on the IPO yesterday/last night.....

Went up about 30% on the git-go...

 

They just don't let us little guys, in the door on the "good ones."

Pithss me off...

Wish they would just quit making the offers, and getting my hopes up...  

Jul 24, 2013 2:23PM
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now this hack says buy BAC..........2 weeks ago he said the big banks were crap and he pumped Huntington bank.............a bank he has pumped for 5 years

 

that's right.............Huntington went nowhere and BAC went up 8%

 

PLEASE BEWARE OF THIS CROOK

AAPL AT 700

GOLD AT 1900

AA AT 18

 

BEWARE

Jul 24, 2013 4:37PM
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Gonna go have coffee with cuz's in this 100* heat....

Tulsa in the Morning..

Jul 24, 2013 4:29PM
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I always get....

BenBernanke

BenGhazi

BenGurion

And a couple other Bens mixed up when you guys yap about them....

They all sound about the same to me.

FB back a little, only up about 14% now AH.

Jul 24, 2013 11:07AM
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In 3 months cramer can point back to this article .....and say "I told you so" regardless of where apple is ......all he does is offer pointless drivel basically claiming that all those other horrible, evil, non cramer sanctioned analysts, think one way and only he the man of la mancha bravely rides forth to tilt at windmills and fight for the common man with the truth!!

It's all to sell you a newsletter for $700 a year that does not tell you how it performed since its inception in 2001 ...check out the 10ks on the street dot com and you can see for yourself what a great businessman crcamer is ....

: }
Jul 24, 2013 11:13AM
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Not to worry though ....I sense a certain racist inspired, cramer defending sancho panza stirring in "NY" where he claims to live !!

A "man" who is so  massively successful (according to himself) that he is rich, his children are rich beyond measure and they can "buy and sell" some of us.

This man is sooooooo successful he feels it necessary to tell people he does not know on the internet all about his vast success and the company he is  the "boss" of ....

As we all know it is a sign of the wealthy that they feel the need to brag to the great unwashed about how wonderful they are ......and how much everyone loves them.

Or perhaps it's not ....perhaps the braggart is a 400lb penniless oaf who resides in his mom's basement and thus has the time to troll the internet all day ....

Which is the more likely scenario ....you be the judge !!   :)
Jul 24, 2013 12:13PM
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"The American public's dissatisfaction with Washington has reached new heights, according to the latest NBC News/Wall Street Journal poll, as the political world continues to fight the same intractable battles over the budget, health care and immigration.
A whopping 83 percent of Americans disapprove of Congress' job, which is an all-time high in the survey. What's more, President Barack Obama has seen his job-approval rating dip to its lowest level since August 2011, when the debt-ceiling showdown wounded almost every Washington politician. And nearly six-in-10 voters say they would vote to defeat and replace every single member of Congress if they had such an option on their ballot ­ another all-time high."

 

TWO DIVIDED CAMPS.

TWO EXTREME AGENDAS.

ZERO TOUCH WITH AMERICA.

ZERO MIDDLE CLASS HELP.

A NATION GETTING MORE AND MORE ANGRY AT STAGNATION MANIPULATION CONTROL AND A LACK OF LIFE. WE WILL NOT BE ASSIMILATED.

A QE INITIATIVE DIGGING US DEEPER AND DEEPER INTO INDENTURE WITHOUT ANY OF IT ON MAIN STREET.

HISTORY SUGGESTS THAT YOU DON'T LIVE THROUGH THIS. MAYBE YOU SHOULD TRY TO READ HISTORY AND NOT PUT KOOL AID IN IT. CRASH THE MARKETS, CLOSE THE BANKS, END THE FED, GET RID OF WALL STREET--- LIVE. BE DUMB ENOUGH TO KEEP YOUR STUPID BLINDERS ON... REPEAT HISTORY.

Our BEST have been forced into destitution by our worst. That never ends well. If you don't want war, do more that works for America, less that involves paper & button pushing. Jobs all around or get the F out of town and the country. Trash the rich, they abused us and will die for it. A United States of America or WW III. Choose better than you have. 

Jul 24, 2013 3:15PM
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Now that the butler (ABS) is here...Time for lunch break.
Jul 24, 2013 2:27PM
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There is no hate. Apple is now rudderless without Jobs. Starting to show the lack of the creative energy already. This firm is sadly no longer the innovative giant Jobs made it. Tough to stay on top without the guy leading the charge.
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