Why does Apple stock continue to rally to new all-time highs in the midst of a global pandemic? Jim Cramer explains.
Apple, with a stock that’s up 12.38%. What happened here? I hate to say I told you so, but once again, in the middle of March, analysts fretted that Apple’s best years were behind it and you would be buying at a time when China would be off limits, because of the president and the U.S. would be disappointing because of the recession. Plus, the gap to 5G is considered too far.
So how did it rally? Simple: the service revenue. When people stay at home and have nothing to do they tend to go to Amazon (AMZN) and the Apple store. We found out recently from the most seer-like of the Apple analysts, Morgan Stanley’s Katy Huberty, that the Apple services revenue has had a dramatic spike. I also like that Apple Pay’s contactless technology has become a necessity in an era when you don’t want to touch cash, when you can’t stand that anyone takes your card, and when the keypad has to be the least sanitary area you could ever touch.
Perhaps best of all, the work at home movement forced a lot of I.T. professionals to accept Apple, which tends to be what people use at their home even as Hewlett Packard (HPE) has some nifty models. But Apple has a phone and the Apple laptop is good for zooming. The bias that IT has shown, make that the tyranny against Apple is over; the pandemic ended it.
MacDailyNews Take: We’d offer a moment of silence for the remaining IT doofuses’ moment of clarity, but they don’t deserve it.
By the way, long, long, long before Jim Cramer, we told ya so — 10 days before Apple sold their first iPhone:
The IT guys are in for a rude awakening and the iPhone is only the beginning. They will have to accommodate the iPhone. Too many important employees will demand it and IT won’t be able to stem the tide. The fact is that business people will decide which device they want to carry and their businesses will adapt to it. Just as they did with “Microsoft-incompatible” Research In Motion’s Blackberry. Apple’s iPhone will be a success with business users whether the IT guy wants it or even whether AT&T and Apple tailor marketing to businesses or not.
Note to CEOs: Who runs the company, you or the IT guy? It’s your job to make the decisions and it’s the IT guy’s job to implement your decisions that relate to technology. Just as with Macs, you need to educate yourself instead of relying on someone with their own, possibly hidden, agendas to make extremely important technology decisions for your company. Most of you could be saving a LOT of money right now, but you aren’t because you’ve delegated an important part of your company’s decision-making to people who, frankly, in our experience, aren’t capable of making good, sound, strategic, long-term decisions. Most IT guys (and we know many) are not open-minded enough to be able to consider new, better, more efficient, more effective options that would benefit your company. In fact, most IT guys we’ve met will throw up road blocks and repeat myths until they’re blue in the face in order to avoid change. Especially change that might make their department less critical or smaller. Bottom line: most of you CEOs have given the IT guy way, way, way too much power. It’s time to take it back. — MacDailyNews, June 19, 2007
Well, CEO’s should not make tech decisions. They don’t understand or care about user experience, just like IT guys. They are sold on what the system tells them, the CEO, that’s how crappy ERP systems like Oracle are sold. To CEO’s oblivious how many screens and keystrokes and wait time and lack of report writing Impact people transactionally trying to execute the business.
Elon Musk should not make tech decisions?
Good CEOs don’t delegate decisions that can swing profitability so drastically as choice of tech platforms:
To bad they didn’t want to make faster smaller Power PC CPU’s, when Steve Jobs called them. They could have made more money. IBM is done…
I’ll guess you are aware of the CEO exception? Jobs was keenly aware of “user experience” and I happen to believe it was one of his top 1-2-3 attributes for success. He was fully aware of speeds, feeds and pixels, but they mattered little to him, EXCEPT how they might enhance the UE.
I can only image how Apple’s ecosystem would look if he could do a little trimming, weeding and fertilizing.
“The service revenue”
All hail the cable company.
Bwah ha haaaa! The butt hurt is strong with applecynic.
You go on rooting for the cable company.
Jim Cramer isn’t necessarily wrong, he’s not stupid and he’s been around the block many times, but to come out today and capitalize on APPL’s $10+ gain today and attribute it mainly to Services and Apple Pay!
Woolley Farkin Dogsh___.
I’m reveling completely in the gain and sold some more today, but his words show the madness/hubris of the fast-talkers on fin-tech. AAPL is obviously a solid company, but these days, gains like today have LITTLE to do with fundamentals and more to do with the Fed primping and pumping…Fed Meetiing ends tomorrow.
Poof, it’s done….
https://twitter.com/jtepper2/status/1270292425282654209?s=21
Maybe one more printing session being arranged?
Plenty of reviewers aren’t exactly happy with the MacBook’s and iMac’s 720p camera, so they’re not the perfect Zooming devices. I don’t know why Apple can’t keep up with something as simple as adding a higher resolution camera for a couple of dollars more. Apple makes itself a target for criticism too easily when there’s no need for that to happen. I personally don’t mind 720p, but apparently tech reviewers think any resolution less than 4K sucks. By the time Apple does increase the cameras to 1080p, all other companies will have 4K cameras in their laptops. Boohoo.
I’m fairly ugly so I will take 640×480 camera please.
Yeah, pleas do. I’m getting tired of looking at your nose hair 😉