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.




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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Jul 24, 2013 10:45AM
most analysts sounds like crying babies and following the herd mentality...are they experts...not so sure.
Jul 24, 2013 10:52AM
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 3:07PM
Hey where is our "Regal" man ?
Is there a tryst with "Jill" today ?
Is he waiting tables at Mortons ?
what ?

Jul 24, 2013 12:57PM
They should have to rename Apple Mandarine Orange .......... just another rip off Chinese company.
Jul 24, 2013 4:28PM
Political site ?? ........ I thought this was an entertainment rag......  You know Brent and Jill went up the hill....
Jul 24, 2013 4:48PM

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
Jim, the Apple haters will never go away. Some people will just be idiots all their lives.
Jul 24, 2013 1:21PM
Dana Perino Bashes Obama: Where’s Your Speech For Baby ‘Shot In The Face By Black Teens?’
by | 3:55 pm, July 21st, 2013 VIDEOs

Former Bush Press Secretary Dana Perino continued the weekend’s primary conservative argument on This Week with George Stephanopoulos, when she asked why President Barack Obama chose the Trayvon Martin shooting as a subject for a national address (albeit an impromptu one) but not any other crimes—specifically,

“When a president speaks, it’s to multiple audiences,” Perino said. “So from the prism of self-defense, when you think of a young mother whose two year old son was shot in the face by the two black teens who approached her in Atlanta, and that baby has died—Why do presidents choose to speak about one case and not the other? That’s why it’s better maybe not to talk about any of them. They chose to talk about this one.”

“I do think that the president is signaling: we’re going to have to move on, good luck on Stand Your Ground,” Perino said.

But the one-case-not-the-other cuts both ways, as former Obama advisor Van Jones pointed out.

“The Stand Your Ground situation is very, very problematic,” Jones said. “You have Marissa Alexander, that’s the next big case. She’s the African American woman who tried to stand her ground against her abusive husband. She fired a bullet into the ceiling, she gets twenty years in jail for firing a shot in the ceiling, whereas somebody who fires a shot into a teenager is still walking the streets a free person.”

Jul 24, 2013 3:30PM
I wonder if Obuma and Holder will bring Zimmerman to "justice" with the same speed and accuracy that they found the Benghazi killers ?
Or , the people behind the IRA , AP scandals ?

Jul 24, 2013 11:40AM
Hey Cramer, on it's last legs Apple is up 6%.
Jul 24, 2013 1:48PM
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

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 4:36PM
Jul 24, 2013 4:31PM
Jul 24, 2013 4:21PM
Like we care ?
Isn't this supposed to be a political site ?

Jul 24, 2013 10:47AM
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 4:39PM
I think "Regal" is morphing into a new name as we speak. Like a butteries metamorphosis (look THAT up "Regal")

Jul 24, 2013 3:23PM
Break your neck while your at it , old fool. Reduce the world of a surplus population of beggars and losers.

Jul 24, 2013 2:15PM
Blah blah blah Cramer. Who cares? I have an Ooma phone.

Stupid people and their phones.

Har har har!
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