Cramer: Apple dip is a ‘buying opportunity’

iphone 4 cases“Apple’s decline on Tuesday has presented investors with a ‘buying opportunity,’ Jim Cramer said during [CNBC’s] ‘Stop Trading!’ [TV program],” Tom Brennan reports for CNBC.

“The stock dropped about $4.46, or 1.73%, today after Consumer Reports issued an unfavorable review of the new iPhone 4, citing reception problems depending on how the device is held,” Brennan reports. “The thumbs-down was viewed as so severe that some have talked of a product recall.”

Brennan reports, “However, Cramer doubted that would happen. He said it was likely that Apple would issue free Bumpers, or fitted guards for the phone, that seem to help with the reception problem. Plus, iPhone sales were exceptionally strong before the Consumer Reports announcement, he said, so the media might be blowing the problem out of proportion. Therefore, he’s still bullish on Apple.”

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

15 Comments

  1. Yep, they all know the iPhone 4 is a stunning technical tour de force and as a company, Apple has moved from a niche player to THE dominant force in the consumer (and rapidly growing business) space. EVERYBODY is talking about and trying to develop the “Apple (insert product name) killer” because they all know Apple is firing on all cylinders and on fire in the marketplace. Rather than try to compete by coming up with better products and processes, there are those who think it’s a really great idea to compete by trying to lower their competitors.

    This is nothing but a blatant attempt to slow Apple’s momentum down (it won’t work) and profit from that same momentum by shorting their stock. It’s no coincidence all this is coming out RIGHT BEFORE Apple releases it’s report for last quarter’s sales and earnings.

  2. It’s still above the market cap for MSFT.

    Long term, Apple is still going to sky rocket, but short term, Apple has some problems.

    In case anyone hasn’t noticed, Apple can’t produce and ship enough iPhones. Something has gone wrong here, and sales estimates need to be revised because demand isn’t a relevant variable at this point in time.

    The iPad isn’t doing so well in terms of production/shipping either.

    Short term, the stock may have been inflated based on sales that were estimated based on demand as opposed to how many could possibly be sold. This wouldn’t be as much of a factor if price here were determined by supply/demand variables, but Apple has fixed their retail pricing.

    Of course production will catch up eventually…the iPad has been upped to 2 million per month, but this will take a while.

    While short supply will push demand into the near future, some purchases will be lost as those with needs may look elsewhere and others may have been primarily influenced by the “must have first” factor.

    There’s also the factor of people wanting to get the iPhone 4 when the hype of the launch peaked, but were unable to…then frustrated…then “I heard it has problems”…don’t give people too much credit in researching and making rational decisions…people will “hear” and hell the “hear” will reflect on the entire product line as much as the halo effect does.

    This means that the iPhone 4 will encounter some of the same “problem” that the iPad has. Namely that people don’t think they want it, and it takes time for people to encounter someone with it in the wild and get valid feedback before they see that they do.

    Long term the iPhone 4 will be very successful…the most successful iPhone yet, but its launch is not what it could’ve have been if only for lack of availability.

    Those that believe in irrational availability conspiracies can suck on that.

    So unless something changes soon, I’d expect this quarter to be weak relative to Apple standards…that is to say, not a massive blow out quarter, which does in fact create a buying opportunity.

  3. I was already in long term and picked up more in May and just watched as the big players got to buy in this week on the cheep to ride the stock up for next weeks quarterly report.

    You can see it coming and can’t help those stock holders that are easily spooked and sell. Apple is going to $375 (I think much more) so why sell at $250 with 50% more to gain?

  4. I don’t believe Apples unit sales will be lower than expected since analyst numbers are usually low. Apple usually sells more than projected.
    iPhone sales were off the chart with the release and I doubt they have that many returns.
    iPad sales also were larger than expected so it will just depend on how many apple could ship.
    No one is talking about Mac sales. Last quarter will probably surprise again. I’m hoping for more than 3m.
    Apple do have a short term issue with the iPhone but I doubt it will impact sales that much.

  5. @FutureMedia Your pst made me think of this – what if the delay on the white was really “fixing” the antenna (some kind of clear coat or something) and they figured that they could just sell the black ones, then launch the white and black with fixed antennas, then retro-fit the already-sold black ones? Probably digging too deep.

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