The Real Reason Cisco's Suing Apple

Stop listening to all the claptrap about Apple (AAPL - commentary - Cramer's Take) and Cisco (CSCO - commentary - Cramer's Take) and what Cisco really wants: monetary damages, stopping the iPhone and the like.

Cisco doesn't want royalties on iPhone. Cisco could care less about keeping the name iPhone. These theories are all wrong.

Cisco's trying to get cool. It isn't cool now.

Here's the deal: I believe that what Cisco really wants is to have Apple open up the Apple TV device -- the just-announced set-top box that streams video from your PC to your TV -- and other products for Cisco to interface with.

Cisco knows that both Cisco and Apple are going to really go at it in the digital home; we have read that repeatedly in all of the "battle for the digital home/couch" stories. A joint arrangement for the home between Cisco and Apple would give Cisco a real leg up, because Apple has the kids and Cisco has no consumer pull at all in the teenage market, which is, of course, the future.

Teens drive the decisions on this consumer stuff. (Again, advantage Cramer: I have the kids telling me TiVo vs. DVR.) Not the parents. And the teens are the ones who will decide everything when this Apple TV product is good and ready.

No one seems to have focused on this side of the story.

They should; it is the truth.

At the time of publication, Cramer had no positions in any of the stocks mentioned.

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