The new curse of the poison Apple

These days, tech names simply can't be connected with the company in any way, shape or form.

By Jim Cramer Mar 11, 2013 9:16AM

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The Apple Inc logo is displayed on the back of the new MacBook Pro David Paul Morris Bloomberg via Getty ImagesLooking at down-and-out tech and trying to come up with good ideas is about as difficult a task as can be found in this stock market.

The reason?

Simple: Apple (AAPL). You simply can't be connected with Apple in any way, shape or form. It will pull your company down just as surely as it pulled your company up when Apple was winning the hearts, minds and wallet share of the world's gadget purchasers.

How bad is it?

I think the world of Qualcomm (QCOM), which reported a terrific number with a solid dividend boost and monster share buyback. It's got multiyear momentum and an incredible franchise that includes 4G for every major handset maker, including Samsung, the acknowledged worldwide leader right now.

The problem is that Qualcomm has Apple as a client, and no one wants to touch a company that relies on Apple. All we keep hearing about is a cancellation or pushback of Apple orders, or a furlough for workers who make iPhones, or excess inventory throughout the system.


That means every negative piece on Apple is a negative rap on Qualcomm. I think that was a sub rosa reason why a Goldman Sachs analyst took it down a notch last week.

Or take Skyworks (SWKS). This is a company that has fought to get in and stay in the Apple product line for years. Every Apple teardown led to questions about whether Skyworks would tumble out. Now, recently, we haven't had to worry that Skyworks is in -- but it came right at the time when we began to question Apple's sales, so it worked out to be nothing more than a push for the stock.

We recently decided to eliminate Broadcom (BRCM) from our Action Alerts PLUS portfolio even though Broadcom is a valued partner of Samsung and is doing incredibly well, to the point that it has been able to guide up consistently.

But Broadcom is a key Apple supplier, too, and that means there's no lift on any good news.

Cirrus Logic (CRUS) has been integral to the great sound behind Apple devices for many years. It's simply the best at what it does, which is why it was able to get that business. Now, though, it's viewed as a one-for-one trade with Apple, and it can't even defend itself, given that Apple won't let it discuss its business with the bully. So it is totally at sea.

You know how crazed things have become in the "hate Apple world?" Watch Intel (INTC). It has slowly but surely been creeping up despite no real momentum and a costly build-out that it's implemented in order to keep pace with its competitors.

But I think Intel has been rallying consistently because investors perceive that it's not caught up in the Apple iPhone, iPad, iPad Mini debacle that has created so much pain for shareholders on the way down. In fact Intel -- which desperately wants Apple's cell phone business -- thinks it's only a matter of time before Apple realizes it has to stop buying chips from and subsidizing its principal enemy, Samsung, and instead use Intel chips. It hasn't happened yet -- and, alas, maybe the hope of being an Apple supplier one day is better than actual being a supplier now.


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, BRCM and INTC.

 

 

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28Comments
Mar 11, 2013 10:50AM
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One more Article about Apple......Ho hum...zzzzzzzz

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Mar 11, 2013 12:29PM
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There must have been a lot of short sellers for Apple when it hit $700 a share.
Mar 11, 2013 2:51PM
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Cramer is an entertainer , so you take him with a grain or two of salt.

 

Mirihaydari thinks he's an expert , hence listening to him can be hazardous to your wealth.

 

 

Mar 11, 2013 11:49AM
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Well, I think people are overreacting.  I just bought a Samsung tablet and was with a coworker in an airport, who has an ipad.  We were comparing devices and connecting to the airport wifi, etc.... guess what?  The ipad outperformed the crap out of the Samsung.  I wish I had spent the extra 100 bucks for the ipad, and I'll bet a lot of other people will figure this out also.
Mar 11, 2013 11:28AM
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And again cramer ....why don't you ever post the results of the action alerts portfolio year over year ...... your 10k filings imply that it loses money almost every year ...is that why?
Mar 11, 2013 10:16AM
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Honestly we are not expecting a whole lot today, after several decent weeks apparently its time for a breather...Manipulators have been going nuts here for a while now, we are sure they will try to do their thing early and often today, this week actually...Trying to hang in there early this morning....More later...Be cautious.
Mar 11, 2013 11:27AM
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Cramer is one of those people that thinks only he has the explanation for everything that happens in the financial world .....if you read this drivel carefully it is nothing more than "if's and buts".....pure speculation without evidence ....cramers old buddy dershovitz would shred such such poorly prepared analysis ....including the words sub rosa does not make it any better nor indeed intellectual ....one of the greatest crimes being committed on the general public is allowing money grubbing crooks like cramer access to the minds of the gullible ...all for a little piece of the money pie.
Mar 11, 2013 2:33PM
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Aapl can't replace Steve Jobs.  End of aapl.  Although Big C is poo pooing, so it may be a good time to buy.
Mar 11, 2013 1:15PM
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We've been hanging in there nicely so far, volume is low and still three long hours to go....We have to be prepared for anything and everything...Things are moving in slow motion down here today, which we don't mind...More later.
Mar 11, 2013 11:34AM
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Ah Apple

The story of it's business is in a way the story of the western world.  We have accountants & lawyers running the show, the profit and effects of innovation can't be explained on a chart or a legal document so they are pushed aside for the easy to see profits from outsourcing and downsizing.  Now here we are, stuck in a seemingly eternal rut........

Mar 11, 2013 12:18PM
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Cramer, you are always a step or two behind technology so you only predict the past.  Apple is a real buy as it will step into and lead the move towards augmented reality.
Mar 11, 2013 11:29AM
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And finally ....why is there no mention of charitable donations in your 10ks ?  I recall last year a press release from the street dot com saying you were donating 300k ????
Mar 11, 2013 12:53PM
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Intel's going into mobile in 2013 and their Atom 22nm 3D chips are going to be a big deal for both Android and Windows devices. I wouldn't be surprised to see Intel at $24-26 PS by end of 2013 or even higher if Apple and Intel get together on foundry of An.
Mar 11, 2013 3:30PM
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How does Cramer still have a job?

He sold Apple so now he can dis them.

Beware, Apple is probably at the beginning of a multi-year decline.  Apparently, no products in the pipeline that can prevent this.
Mar 11, 2013 5:22PM
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Nice little rally the last half hour of trading kept us going....No complaints here...Time to take things one day at the time though...More and more calls for a correction around here; a small one would actually be healthy...Lets see what happens.
Mar 11, 2013 11:23AM
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You might add the image of Apple being the best outsourcer doesn't contribute as well to a positive underlying image.  Even though Korea isn't much better I do think the evidence of worker abuse is an important consideration.  I think many Americans do care about worker rights but it seems the American media has chosen the subject as not important enough to focus on.  To see the Apple CEO sitting next to the first lady during the SOTU speech seemed questionable.  How could the POTUS talk about raising the minimum wage while having the king of outsourcing as his personal guest? I guess what I am saying Jim  is Apple has become a little too politically mainstream.  The outlaw Jobs was almost a cult like figure.  His determination for the newest, best, and most innovative to many of us is lost forever and all we have left is a business management team.  He WAS the magic.  JMHO
Mar 11, 2013 1:47PM
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Ahhh... finally, the Sweet sound of Capitulation...
Mar 11, 2013 11:37PM
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Nope it just came back...Where are we at, in the Twilight Zone, in a Wall St. basement.??
Mar 11, 2013 11:34PM
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I think I had a post removed here ??
Mar 11, 2013 1:38PM
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Hey, V_L..........NOT ONLY CAN I RUN....I can gallop like a Wild Stallion...!!!

 

Well at least that's what I was DREAMING last night..

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