Jim Cramer: Apple Didn’t Order Enough Parts

Apple surprised Wall Street to the upside in its second quarter report because analysts misread supplier inventories and demand for iPhone parts, says Jim Cramer.
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Apple (AAPL) - Get Report surprised Wall Street to the upside in its second quarter report because analysts misread supplier inventories and demand for iPhone parts, said TheStreet's Jim Cramer. Cramer said Apple had the orders for iPhones but simply did not order enough parts for its product. Apple sold 40.4 million iPhones in the third quarter, while analysts were expecting 40.02 million. The company's services business revenue grew 19 percent. Cramer said the bears will be relentless in attacking Apple, but the technology giant's services revenue will surprise the Street in future quarters.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.