“When the stock of the biggest company on earth, Apple, rallied more than 6 percent on Wednesday — it was clear to Jim Cramer that analysts got it wrong,” Abigail Stevenson reports for CNBC. “Somehow the company that just sold one billion iPhones managed to fake-out almost everyone on Wall Street.”
“‘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.
Moving with the herd is the way to slaughter.
Yeah…better reason..Apple finally found the jerk in their accounting department that was a corporate spy. I believe Apple sales data is worth something.
Or, more likely, they found the jerk in finance who refused to mark down a new iPhone to $399 and moved him to janitorial services.
The iPhone SE’s pricing is a breath of fresh air at Apple, which had been systematically trying to eke out more and more profit.
I won’t hold my breath, but a $100 price DROP across the line for the iPhone 7 would result in similar sales.
And the Tim Cook Hating Doofus Crowd gets more egg on their specious faces. Sure Apple could always be improved but the sad thing is the same improvement thing should be required of these posting fools who think derogatory and infantile gay comments is intelligent commentary. Every time someone posts like that their credibility instantly gets shot down in flames to a resounding site yawn. But it would take real maturity and brain power to post something intelligent which these emotionally undeveloped fools do not possess.
Apple fanboys constantly and consistently wail and gnash their teeth invoking Wall Street conspirators artificially manipulating Apple stock. Now, apparently, this evil and massive cabal blesses Apple stock price. Explain how your tin foil hat theory fit into reality.
That’s the problem, there is no rhyme or reason. Apple has always been an emotional stock, not a rational one for investors. They operate under the theory Apple HAS to fail one day, which is true of all companies but specious in it’s invocation. That might be true but not anytime soon. You could say that about all companies which would result in a moribund stock market. Theories abound, most of them wrong. I’m sure yours are amusingly faulty.
Disingenuous much l’il Frankie? You can put your tin foil dunce cap back on and go sit facing the corner, again.
I agree. Your thinking (and I am using this term generously) is totally without “rhyme or reason” (your words). I admire your audacity to brag about your ignorance as if it were a virtue.
Total abject ignorance is your BEST quality. Amusing how you present yourself in an Ivory Tower when you’re in reality a basement dweller in intelligence. It was cute once, now just obnoxious as hell. Li’l Frankie trying so hard to grow up and failing so miserably. Truly sad. You offer up nothing worth listening to.
Gratifying MDN must’ve reamed you a new one by your sudden disappearance. (And when you disappeared so did many other of your cockroachian assholic pseudonyms.) Trolls never last long off looking for other sites and other victims posting their usual insulting brain dead garbage for their jollies. So long and good riddance!
I neither need nor desire your approval or other Apple fanboys. You, however, base your entire existence and worth as a human being on the number of little stars you have after your posts. You are truly pathetic.
It’s a good thing by now you’re used to being unliked, petty, clueless and lost and have no problem with it. You disingenuously talk about the star system here so obviously you DO care if you’re being summarily rejected, as we certainly don’t mention it. Oblivious to civility, traveling the low road, the abandonment of reasonable discourse are your primary aims (so are a troll’s). Pity the Frankish fool who really works at being ostracized with his poor conduct while offering up bravado and bluster to assuage his ego to no effect. You’re a boorish bore.
I ask you again Frank.. Whats your beef. And why are you here?
What do you get out of it?
Few analysts have spotted the significance of Apple’s inventory reduction over the last quarter. Some were expecting a reduction of up to $2 billion, but the actual reduction turned out to be $3.6 billion.
You beat me to it. Ignore my message, below, because you basically covered it. 🙂
As I understand it, Apple reduced channel inventory dramatically this quarter precisely because its certainty about sales predictions was lower than normal. Uncertain projections necessitate a lean channel. Apple and in particular Tim Cook have always excelled at optimizing channel strategy.
Anyway the lower channel meant they ordered fewer parts. Sales would have been $1.5B higher, and both top and bottom line would have increased dramatically, had Apple not shrunk channel inventory this quarter.
The sort of analysis done on Apple is done on ludicrously slim data. Analysts have to extrapolate to an absurd degree to get revenue projections, and they are ALWAYS wrong. Every time. Because you can’t look at rumors about one supplier’s purchases and deduce Apple’s sales. Apple’s notorious secrecy confounds that sort of derivative analysis by changing suppliers mid-quarter, varying channel load, and intentionally draining channels when introducing a new architecture. It’s insane that Apple’s market cap responds to these childishly low-information prognosticators.
End of rant.
“It’s insane that Apple’s market cap responds to these childishly low-information prognosticators.”
Yep. I was going to say that there was no mystery to me. The only ones “faked out” were Wall Street morons.
You said it well.
Wall Street is full of over paid idiots sucking the life blood out of American industry. I wouldn’t expect Cramer to be able to figure it out, he’s one of them!