Jim Cramer: Apple Is A 'Total Victim Of Its Own Success'
According to CNBC's Jim Cramer, Apple Inc. (NASDAQ: AAPL) is a "total victim of its own success."
During Cramer's Wednesday segment of "Mad Money," the host pointed out that Apple sold an "unsustainably large" number of iPhone devices last year.
"I feel like Apple's management team didn't realize the iPhone 6 was on steroids, particularly in China" Cramer said. "They didn't really know how to gauge what could happen next."
Cramer continued that Apple's most recent iPhone sales data which fell year-over-year was merely "sub-optimal, but not terrible." In fact, following the recent quarter, Apple's management has a "much better understanding of this."
Cramer suggested that Apple's service revenue is growing and he "loves it" even though it isn't "growing fast enough... yet." He expanded that Apple's services revenue will show signs of strong growth when there are 1.5 billion users worldwide as part of its ecosystem – perhaps as soon as 18 months from now.
Bottom line, Cramer stated that Apple's stock is "too deep to sell" and "not cheap enough to buy."
"If you own it, just hold it," he concluded. "If you don't own it, wait for more downgrades."
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