Wednesday, August 12, 2009
CNBC's Chief Mascot on Apple's China deal
Jim Cramer just reported a "rumor" during his idiotic "Stop Trading" segment that CHU (China Unicom) has ordered 5 million iPhone units. I have been a long-time bull on Apple shares and follow the story closely. Color me skeptical on Cramer's rumor given that an Apple/China Unicom deal has not even been finalized. CHU has supposedly committed to selling 1 million iPhones per year as part of the rumored contract negotiations. Why would they pre-order 5 million units before they even close the deal with Apple? I think it's possible that Apple could sell 5 million units in China in the first year given the strength of the Apple brand in China. But, I think Cramer literally made this rumor up and would chalk it up to him being totally reckless. The Beijing Business Today newspaper quoted Apple CFO Tim Cook last week as saying he expected a deal to be finalized by the end of this autumn. Not surprisingly, Cramer's make believe rumor has moved AAPL shares 1.50 higher to 166.50 from 165 in the last 15 minutes. Efficient markets!