“When the consensus speaks, it sure is hard to argue with it. Last 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,” Jim Cramer writes for Real Money. “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,” Cramer writes. “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.”
Cramer writes, “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. ”
Read more in the full article here.
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The world needs a boogieman.
Actually, I don’t think it’s hatred as much as it is, hits.
As much as I like my iPhone 5, it’s not going to be the last phone I ever buy, just like the Macbook Pro I bought in June won’t be the last Mac I ever buy. These guys are short-sighted and cannot see further than the next quarterly results. I will upgrade to an iPhone 5S or a 6 within a year and I’m not all that special. Everyone who has an iPhone right now will likely buy a newer one in a year or three, so sorry Mr. Analist if that isn’t fast enough for your Q3 projections. Get over yourself.
Did you read the article? It looks to me like Kramer is coming back to his previous positive position on AAPL. About time.
Here, here. You got it.
It isn’t hits either, it’s that old stock market phenomenon called the Bucket shop come to life.
http://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
What a load of crap. Unbelievable. Saturation of high-end phones? What kind of dinosaurs are these people? There’s never a saturation of new high-end technology. “The consensus hates Apple” says a little “too much” about “the consensus.” Bunch of greedy idiots who know nothing about anything other than manipulating money.
the consensus was wrong – blatantly wrong, but the consensus is still the consensus, and we know it…. Like a little child when asked a question, replying with “because”…
They’re talking about growth…. not the current market continuing to trade up every year or two.
Cramer is actually taking the “consensus” to the woodshed, and doing a right smart job of it, even calling them the “jackal-led think-pack”. Charming characterisation. Wish I’d come up with it myself.
And the “consensus” is dead wrong about growth potential. Horace Dediu says “… not only is there no saturation, but there is no slowing of adoption of smartphones in the US, the most penetrated large market.”
http://www.asymco.com/2013/07/17/everybody-has-got-a-smartphone/
Brilliant as usual Hjs. Thank you!
Consensus of dunces.
This is the same consensus that sold the entire US and subsequently the world economy down the tubes 6-7 years ago, all for crooked personal gain.
Only idiots would still heed or pay any credence to any of Wall Street’s guidance, advice, or consensus
“What kind of dinosaurs are these people?”
Deluded dinosaurs who think their own shit smells like roses. 😀
He’s a moron… Why on earth should Apple listen to what Wall Street has to say about its products or product mix? The street has a ‘consensus’ about serving their own interest – money in their pocket – and are manipulating the stock price accordingly. This isn’t about moving product; this is about moving share price.
Yeah Cramer – its the wrong type of phone that oversold by 5M estimates – it is comical looking at spin city now – screw Jim Cramer
The iPhone 4 and 4S which Apple is selling to people ARE new phones — just an older model at a lower price. Apple still makes a very nice profit off of each one.
What Kramer and his ilk fail to understand is that Apple has moved past being a strictly hardware company. Apple is now a services company as well. The growth in iTunes sales, App Store sales, etc. is constant, continuing revenue from ANY iPhone sale, not just iPhone 5 sales. Apple has built an entire ecosystem which people are dependent upon, much like Microsoft did with Windows and its software development partners years ago.
that Jim sure is loud.
The mobile market will plateau again, just as it did Pre-iPhone.
There are tens-of-millions of people who would love to have my iPhone 4S but still haven’t managed to lose their iPhone 3 or 4 or Samsung GS, yet.
The 4S is such a better experience compared to anything but iPhone 5, Apple’s marketshare could expand laterally for another five-years just through attrition of earlier iPhone models.
By then, Scott Forstall will have developed an alternative to iOS founded on Holography, Haptics, and sensory IO, which will provide the formula for overcoming the next plateau.
The question is, does Apple, Inc. invite Scott Forstall back, allowing him to return to his perch atop the shoulders of Steve Jobs? They will if he comes bearing gifts!
Scott should come back to Apple!
One would hope that Scott learned his lesson…
Personally, I think Scott had a hand in bringing in the Anki group. Apple is probably waiting to see if he can create a next generation Siri. They may be letting him work in secret, and bad blood may have been healed. We shall see…
The truth hurts Jim Cramer. So tell your dumb asses to stop the negativity on Apple because all of you are WRONG!!!!!!!!!!!!!!
The anti-Apple bias is as fanatical as the Miley Cyrus shorts/bikini/new tat obsession. I hate the media.
This thing is this though: at what point does Apple realize that keeping their customers starved of updated (forget new, they don’t do new any longer) product erodes the halo around it’s retail stores? Because they haven’t offered anything in almost a year I haven’t stopped in just to browse. This once a year cycle needs to be broken by staggering their releases much better. In September an updated iPhone, in December an updated iPad, in March an updated MacBook Pro. If at any point the form factor would change on these then you could probably get away with calling it new but that remains a remote possibility from the looks of things right now. Even so, a staggered update schedule as laid out above would at least create a much better perception of the company then these once a year all-at-once announcements. Last September feels like a lifetime ago and Apple appears like its stalling to the casual observer, even if it’s merely chugging along as usual. If they created a constant flow of updated products it bring in even more customers and the feeling that Apple is firing on all cylinders might return.
Right, and Cramer has been leading the hate-brigade.
The stock analysts are doing what they does the best, to sell stocks for commissions! People who buy stocks are reaching for their goals, to make money. Apple is doing what they does the best, to make good product! The same with medieas, to write stories to gain readers, no loyalty whatsoever!
Most of these analysts are so narcissistic that they would rather die than utter the words, “I was wrong.”
“The consensus holds that the market isn’t growing anymore.”
Apple’s actual sales numbers show that the consensus was wrong, but the people behind the ‘consensus’ are too pig headed to accept facts and will still cling to their false theories.
Im NEVER buying an Android or a PC again. Sorry analyst. You can use all the modeling in predicting you want but people with brains and some money dont buy crap…….
Funny how Apple gets criticized for not having a lower end phone to compete against Samsung’s volume sales and now that they are getting those lower end sales they’re still wrong!
I love Cramer but he have really been on of the bigger Apple haters out there as the stock has been sliding. He was the worlds biggest Apple bull on the ride to 705 but after that stopped believing in the company and now he does again? Of course there where allot of signs about things what was worrisome when the stock went up but those were ignore, at the same time allot of good things were dismissed as the stock went down and what mean with that is that most opinionaters, pundits, experts seems to follow the broader sentiment… When Apple were sliding for weeks and weeks it really shine through who was a real Apple believer, a Burberry in the company not just some Wall Street schlomo along for the ride.
what does Consensus say now? 9 millions new iphones sold over 3 days? Who has a last laugh I was wondering?