“‘I think I have solved the mystery. The chief pillar of the bearish case on Apple was the looming shortfall in cellphone sales,’ the ‘Mad Money’ host said,” Stevenson reports. “The thesis was that if Apple did not place a lot of orders with the chip makers, than it would be stuck with inventory and may need to slash prices to get rid of the excess supply. “‘What nobody thought about, what no one even imagined, is that maybe Apple didn’t order enough chips because it underestimated the demand,’ Cramer said.”
MacDailyNews Take: When it comes to Apple, faux “concerns” are massaged until all reason evaporates.
“Perhaps Apple itself didn’t realize how compelling its new phones were and didn’t realize there would be more people switching from Samsung than ever before and upgrading from older phones,” Stevenson reports. “In fact, Cramer said, it may have not realized how popular it is in places like Japan, India, Turkey, Russia, Brazil and Canada. ‘That is really the only explanation for how so many analysts interpreted the data wrong,’ Cramer said.”
Read more in the full article here.
MacDailyNews Take: Wall Street analysts in general, and Apple analysts in particular, tend believe everything the echo chamber tells them – until it tells them otherwise. Flock like pigeons, they do.
Don’t be a pigeon.