Jim Cramer: Too much Apple hatred

“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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31 Comments

  1. 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.

  2. 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.

    1. 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/

    2. 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

    3. 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.

  3. 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.

  4. 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!

      1. 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…

  5. 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.

  6. 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!

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