Does Jim Cramer Hate Apple Now?
Apple dropped below $500 in intraday trading on Tuesday after managing to stay just above that mark the day before. The stock has had a forgettable last few months, but behind its latest fall are news reports that claim the company was seeing lower-than-expected iPhone 5 sales. According to Cramer, who hosts “Mad Money” on CNBC, it was no secret that Apple’s new products had been received with incrementally less enthusiasm than before. And the company may only have itself to blame for the dropping excitement levels, Cramer said.
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“The new iPhone came with a new plug,” he said. “Nobody I know wanted a new plug. They have their old ones, and they loved the fact that you only need one plug for the whole Apple ecosystem. The ecosystem took a hit, and the ecosystem is part of what makes Apple so terrific and unique.”
The investment expert said he was also beginning to get worried about the potential of a rumored high-definition television product from the company. The device, whenever it comes, may not be as big a catalyst and as breakthrough a product as many expect, he warned. “Steve Jobs was able to roll the executives in the music business when he put together iTunes, but Apple won’t be able to roll the cable companies because they are too powerful and aren’t weakened and desperate the way the record companies were,” Cramer said, crediting the opinion to Jobs’ biographer Walter Isaacson.
Cramer added that even though the stock was now coming down to levels that were surprising on a valuation perspective, he didn’t see a reason to buy more. But he wasn’t giving up on Apple entirely either.
“I love this company and, of course, things can turn around,” Cramer said. “I’m still holding some of my Apple position because Apple could still dazzle, maybe with an acquisition, maybe a new product.”
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