This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Were Apple's iPhone Sales 'Crappy'? Henry Blodget Thinks So

NEW YORK ( TheStreet) -- Tuesday on TheStreet, I chided Wall Street analysts for their role in the iPhone 5-related dive in Apple's (AAPL - Get Report) stock price.

I was unfair, but only to the extent that I unintentionally exonerated the media from its share of the blame.

The hype surrounding this story showcased -- and, sadly, continues to showcase -- everything that is wrong with the smash-and-grab 24-hour news cycle.

I believe in being provocative, in bringing entertainment value alongside investment value and unique perspectives on the news. That's all good. But, above all else, I shoot straight.

For instance, my first reaction to news that Apple "missed" iPhone 5 estimates was not that they "missed," but that irresponsible Wall Street analysts who produce unscientific and unreliable projections deserve flack for bigger picture problems in the dysfunctional analyst-media-stock market relationship.

For better, but usually for worse, the media eats analyst conjecture up.

This unfortunate tradition of taking seriously the numbers analysts pull out of the air leads us to the absurd territory of being let down when Apple sells, at minimum, 5 million phones in one weekend!

And, if you're Henry Blodget at Business Insider, you can be all over the place on the issue. While you're there, you can take a well-regarded partner like Bloomberg into the mud with you.

Here's a Tuesday morning Tweet from Blodget:

Follow me here.

Blodget teases a story by referring to iPhone sales as "crappy."

Let's start with what's wrong with that.

First, they weren't crappy. If they were, I guess his characterization would have been fine. But, they weren't.

The number, including preorders, might have been more than seven million. And, by now, who knows how high it's gone? So Henry, please tell us, what the hell were you talking about when you said sales were "crappy?"

What makes things even worse is that Blodget uses the disingenuous "crappy" line to lead into a story that absolutely does not reflect the tone of his tease. When you open the link, you come to a Business Insider-hosted version of this relatively tame Bloomberg story titled, "Apple iPhone 5's Thin Display Drives Supply Shortfall."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.82 0.91%
FB $105.75 -1.10%
GOOG $748.29 -1.00%
TSLA $218.20 0.21%
YHOO $32.95 -1.20%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs