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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Apple Is Still Better Than Its Rivals

NEW YORK (TheStreet) -- I've never been a person who tells a great joke. In fact, if there is a good joke, chances are I would end up screwing up either the delivery or the punch line, or both.

But have you heard the one about Apple's (AAPL) impending collapse following its earnings miss on Tuesday? It is said to be of "RIM-like proportions." If you haven't heard it, you're not missing anything because the joke is not very funny.

Let's Not Get Carried Away

My column on Tuesday ahead of Apple's announcement, which suggested Apple stock is heading to $1,500, caused quite the stir.

In fact, on numerous occasions I was labeled an "Apple Fanboy" -- you know, the term used to describe investors of the company who have supported it since the stock was trading at $90 three years ago and possibly lower. In other words, it's a synonym for "smart."

However, upon Apple's disappointing results, I was reminded on the company's Live Earnings Blog by a renowned supporter of Research in Motion (RIMM) that I should be embarrassed for having written such a glowing narrative about Apple.

But before we continue, I need to point out that the price target for $1,500 was projected three years out to 2015 and heavily predicated on the assumption that the company would have by then entered the automobile dashboard.

Nevertheless, by sheer virtue of its recent dominance, there are many who have waited for a day like Tuesday to see the company fall flat on its face.

In addition to RIM, you Google (GOOG) and Microsoft (MSFT) fans can now rest comfortably. You now have proof that Apple is mortal after all.

But what exactly has changed with its narrative? Absolutely nothing.

The Quarter That Was

So looking at its number for the second quarter, some perspective is warranted here. Apple posted both revenue and profit increases of over 20%. Imagine what that means for a second. Confetti would be flying at RIM or Microsoft headquarters. At Apple, however, that is just not good enough. That level of growth was its slowest in over two years.

Still, for the quarter the company sold 17 million iPads, topping forecasts, while selling 26 million iPhones. What's more, while its iPhone sales have increased almost 30% year over year, it is considered "tepid" by the standards imposed on the company. Accordingly, I think there's a meaningful gap between how well the company actually performed in the second quarter and how the market has responded.

Stock quotes in this article: AAPL, RIMM, GOOG, MSFT, AMZN 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs