TheStreet.com TV Recap: Getting to the Core of Apple's Fall

Scott Moritz joined Jim Cramer on TheStreet.com TV's Wall Street Confidential Web video on Wednesday, and Cramer asked the telecom reporter to shed some light as to why Apple's (AAPL Quote) been "all over the map, but mostly down."

"This is a company that we just heard a couple of good data points from," Cramer said. "We understand that the iPhone had been selling well, we understand the quarter was good and they low-balled the guidance again, but ever since then, the stock's been going down."

"Obviously the speculation about the stock is quite hot," Moritz said. On Tuesday, after the stock went down about 3% on some rumors, Moritz said, he was calling around trying to figure out what was going on. The speculation, he said, was that there were going to be some production cuts of the iPhone, almost in half. This was "purely rumor," Moritz said. "We didn't have anything to ground it on."

However, Moritz said he managed to trace down where the rumor originated from. "It was from a little boutique research shop -- very secretive," he said. "They came out with what they called a half-cut in production. There was something behind it. We don't know if it's true yet. Apple doesn't say anything."

When Cramer asked Moritz about the argument that the iPhone is just a "glorified PDA and PDAs are mostly bought by corporations," as analyst Ashok Kumar of CRT Capital recently said, Moritz said that there has been a lot of coverage being thrown around as to whom the iPhone is ultimately for.

"I think we're in the early days of all this and it's going to sort out," Mortiz responded. "Christmas is coming, the big holiday season for phones. It's going to go through the roof. I don't know if Apple is going to continue to be a great success with the iPhone, but they have other models in the works."

"Obviously the phone is spectacular," he continued. "It's way ahead of other cell phones. Let's just face it. It's $600, though. You run into a big barrier there."