With Apple Representing A 20% Weighting In The Nasdaq, Steve Jobs Better Pick His Words Well Or Flash Crash 2 Is Here

Tyler Durden's picture

A chart from Bespoke Investment Group demonstrates why Steve Jobs better pick his word very, very carefully. As AAPL accounts for a 20.1% weight in the Nasdaq, and is an HFT darling, as well as having every analyst on Wall Street loving it, should this stock tumble, we expect an 80 point ES drop in the market by EOD.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
scratch_and_sniff's picture

Jesus, hope not, i have just spent the last 30 mins loading up on all sorts.

scratch_and_sniff's picture

HOLD ON...EVERY ONE GETS A FREE CASE BUY BUY BUY!!!

MarketTruth's picture

The free case was the cheapest and WORST 'solution' Apple could offer. This is typical of Apple, because if you have ever dealt with them on a middle to higher level you realize they could care less about their customers and only care about profit and what is in their their best interest. Apple's treatment of where they source their products speaks volumes and notice they could care less about the suicides or what workers get paid or how they are treated.

Typical Apple, i expected exactly what they did (do the cheapest thing possible and not properly fix their product with a simply recall in-store antenna fix). Believe me, the more you really know about Apple the company, the more you wake up to their evil doing selfishness.

rapidsingleflux's picture

Since when is mitigating a problem with a low cost alternative evil?

Why is it expected that apple should behave differently from other corporations?

It's nothing but blind fanboyism to expect apple to go against their own interests. A recall would be terrible for profits and shareholders. The bumper works and the customers will accept it as a solution. The return rate of the phone speaks for itself. At a paltry 1.7% I would say the customers are extremely satisfied with the phone. The 3gs had a return rate of 6%. Let the numbers do the talking. This solution will probably appease most of their customers concerns.

MarketTruth's picture

So why not FIX the phones and not use a band-aid (case) for those who feel their device is defective due to bad design? Sure the case is a fast and easy gimme, but many expect more from Apple who claims to be a customer caring company. Agree companies want to save money, yet Apple really blew this one and it was their first real implosion. The relatively small cost of providing a real solution would have paid dividends in the future. Now Apple customers know what to expect when the company releases a defective product. It is bad enough you can not change SIMS easily, can not change the battery easily, can not add a memory card for ease of transferring data and achieving more storage space and so on like other phones.

HTC, Nokia, Samsung, etc may gain some nice marketshare thanks to Apple's lack of custmer service.

I am a Man I am Forty's picture

Have you talked to any IPhone 4 users??  I have.  All said they love their phone.  One person said their phone works better with a cover on it.  98% of the end users are happy with their phones.  That is what phucking matters.  Not your sidewalk superintendent opinion on what the company should do.  The market doesn't think it is a big deal either.  

 

MarketTruth's picture

Wow, this is not good for Apple

www.bloomberg.com/news/2010-07-15/apple-engineer-said-to-have-told-jobs-last-year-about-iphone-antenna-flaw.html

Apple Inc.’s senior antenna expert voiced concern to Chief Executive Officer Steve Jobs in the early design phase of the iPhone 4 that the antenna design could lead to dropped calls, a person familiar with the matter said.

Last year, Ruben Caballero, a senior engineer and antenna expert, informed Apple’s management the device’s design may hurt reception, said the person, who is not authorized to speak on Apple’s behalf and asked not to be identified. A carrier partner also raised concerns about the antenna before the device’s June 24 release, according to another person familiar with the situation.

rapidsingleflux's picture

I do agree that would be the customer friendly option, but apple knows its customers are easily swayed by keen marketing tactics and that's what the conference today was all about. Convincing the customers that apple is not at fault. It happens to "all" phones. Many of them will buy into it. Those that don't will most likely switch. Apple does have the take it or leave it mentality after all.

A recall would not be a low cost solution. It would require a full engineering redesign and extensive modification to existing phones. It would not be a small task. One has to question how this got through QA so easily.

And yes this will probably push some more users to android. I consider that a good thing. Competition is good for apple and good for the phone market as a whole. Apple got complacent being the #1 phone and this is what happens when companies are too confident. They release shoddy products. They will respond real quick when they see their market share dropping.

MarketTruth's picture

I do agree that would be the customer friendly option, but apple knows its customers are easily swayed by keen marketing tactics and that's what the conference today was all about.

So treat your customers like idiots. Brilliant! Of course Goldman Sachs does the same to many...

 

Convincing the customers that apple is not at fault. It happens to "all" phones. Many of them will buy into it. T

Hey, everyone is doing it in the market nowadays. So perhaps tell a small, kinda, you know, fib like Goldman Sachs does?

i see there is a pattern forming. Seriously, Apple blew it and is now cheating their customers from offering an in warranty mechanical/electrical fix. Bad form and sets an example for possible future problems with Apple hardware devices.

Tarheel's picture

Jobs is a fuckin marketing genius. A short run in manufacturing the Iphone 4 was a win win since they now need to modify the design (not to mention the furor it caused when they stopped taking pre-orders).

Johnny Bravo's picture

Who would have thought that a guy that dresses like a Star Trek villain and never changes his clothes would have fanboys lined up around the block to blow him?

I just don't understand.

I am a Man I am Forty's picture

I used to think most of the ZeroHedge readers just hated corrupt thieving assholes a la Goldman Sachs, now I think a bunch of people on here just resent people who are successful.

Ripped Chunk's picture

Yea, you see right through it all. I myself strive to sell a product with a 30%+_ failure rate where the warranty replacements don't even make a dent in my margin.

I am a Man I am Forty's picture

10% failure rate in first 2 years.  People that run over their phones are included in your number.  Everyone I know likes their IPhone.  That's why they sell so many.  I've had to replace my blackberry twice, so not uncommon for smart phones.

Missing_Link's picture

Agreed.  Apple is a solid company with several of the world's best products -- iPod, iPad, iPhone, and iTunes -- and doesn't deserve anywhere near the scorn it gets on ZH.

Ripped Chunk's picture

It's crap. Glad you are enjoying yours

Turd Ferguson's picture

Apple shitcan, bitchez!!!

Turd Ferguson's picture

First of all, "fuck you" to whoever junked me above. ;)

Now, here's my question: Does it bother anyone that one stock makes up 20% of the "index"? Not only that, its one of the only companies in the index that is consistently growing earnings. Doesn't it seem that the NASDAQ is deliberately trying to create the appearance that all is well when they weight 20% into one, fast growing stock and underweight all of the other struggling tech stocks?

suteibu's picture

I'm with you on that.  That seems like the big news here and not what Jobs is going to say.

Turd Ferguson's picture

And, if my math is right, #s 2-9 make up 24.6% of the "index".

Sooooo.....the top 10 components of the NASDAQ make up almost half of the "index".

Man, the BS is just everywhere. MOPE and SPIN as far as the eye can see.

B9K9's picture

Pareto principle aka 80/20 rule; also where the term "long tail" comes from. You know, the long distribution of smaller entities (80% of the total) that comprise only 20% of total valuation/earnings.

Since we do everything bigger & better in America, we've taken the PP to new heights in terms of income distribution, so now our curve looks more like the 98/2 rule.

aint no fortunate son's picture

The BIG news is that for the first time since this stock started running in 2004, they fucked up. And they're gonna pay for it because that one crack is just like the first crack in ANY bubble. The denial and the justifications and all the other typical bullshit will start flying from every house on the Street that has a buy on this thing, which means every house on the Street, and they will all be trying to orchestrate a run-up so THEY can bail before all the greater fools do. This is gonna be funny as hell to watch.

Dr. No's picture

You are right.  Credit is due.  I was expecting the gulf disaster to be a black swan event.  Turns out history will mark the iCase is market's pearl harbor.  I am being serious.

suteibu's picture

I am being serious

 

Still...that's funny as hell.

aint no fortunate son's picture

Thanks... but don't worry, the black swans are going to be raining from the skies in droves before this disaster aka market breathes its last. Btw, did you happen to hear the terror in the voice of that conflicted "analyst" from some brokerage who was bulling AAPL to the crew on CNBS's "Front-Running Money" show at 12:30? The only one who wasn't there lapping it up was Joey Testosterone... he's probably too busy getting his shorts set up on Goldie... Oh, but wait, he said he was LONG that...

Mr Lennon Hendrix's picture

First, yes...

Second, fast growing?  Apple is in a baubble..who will buy their stupid gadgets from here on out?  Not maxed out US consumers, not Chinese laborers, not Euro trashed bank bailers, not nobody.

Third, get your ass on the gold thread!

centerline's picture

And one that makes products that consumers really do not need.  Yeah, warm and fuzzy feelings all over regarding the stability of these markets!

centerline's picture

And one that makes products that consumers really do not need.  Yeah, warm and fuzzy feelings all over regarding the stability of these markets!

centerline's picture

And one that makes products that consumers really do not need.  Yeah, warm and fuzzy feelings all over regarding the stability of these markets!

centerline's picture

And one that makes products that consumers really do not need.  Yeah, warm and fuzzy feelings all over regarding the stability of these markets!

centerline's picture

oops to the multiple postings.  something went wrong over here.  anyone got a mop?  cleanup on aisle 4.

Cognitive Dissonance's picture

LOL

Looks like a man who's been denied sex for a year suddenly got....um....lucky? Next time pace yourself Dude.

Mr Lennon Hendrix's picture

I'll junk the above in a feeble attempt.  Not this one though, good for a laugh.

thesapein's picture

lol

why are we all laughing so hard?

i dunno, but thanks for laugh!

Cognitive Dissonance's picture

It was the brillant recovery that saved the day.

oops to the multiple postings.  something went wrong over here.  anyone got a mop?  cleanup on aisle 4.

 

Inspired and humble. Nice, very nice.

thesapein's picture

Yeah, I wrote that after reading the comedic recovery and laughed so long I forgot why. 

-1Delta's picture

+1 Apple computers ok, but the stock can suck my cock

Johnny Bravo's picture

Their computers are just like their stocks.  Overhyped and overpriced.

"I just paid 2000 dollars for a notebook!  Now it has an INTEL processor!"

"Oh wow, you mean the same Intel processor in a 500 dollar PC?"

"Ummm... yeah, well, this one's different.  It has a shiny case and ummm... Safari.  Yeah."

almost_have_a_name's picture

They make their money by culling the software herd, only the strongest software survives on their platform. This entitles them a 'holier-than-thou' premium.

Open-source is catching up to Apple and MS. Google uses Linux everywhere. A few more years and Apple will be reduced to a brand name. They are the next Bell and Howell !

 

ColonelCooper's picture

I bought an ACER computer to use in my pickup, because for the beating it takes, I just couldn't justify spending big money on it.  Did I mention this was in August '08?

Two years of running 8-12 hours a day, vibrating around on a console, extreme heat, punishing cold, powered by an inverter. 

When whatever mystery food from my lunch gets lodged under one of the keys, I just hit that key a lot really hard til it comes out of it.

I've never had so much as one hiccup from it.  (other than vista lockup)

Cost: $375 

Johnny Bravo's picture

What bothers me is that Apple has a higher market cap than Microsoft, which has more than three times the revenues AND profits that Apple does.  Not to mention cash and other assets, which Microsoft has tons and tons more of than Apple.

So why is Apple overhyped to the point it is?
Why does it trade at such a high premium (P/E) to a better and more reliable stock like MSFT?
Because of growth?
MSFT CAN'T grow because it already has the market cornered.  How you going to grow when you already have 90% of the OS market, all the Office software market, etc?

Apple's stock is just like it's products... overpriced to underperform.

-1Delta's picture

look at the beta...

and those numbers were based on phones that... umm worked

JLee2027's picture

Now, here's my question: Does it bother anyone that one stock makes up 20% of the "index"? 

That one stock is 20% is lunacy.

Doesn't it seem that the NASDAQ is deliberately trying to create the appearance that all is well when they weight 20% into one, fast growing stock and underweight all of the other struggling tech stocks?

Hmmm. Looks that way.

 

thesapein's picture

You guys are all over it. It's awesome when ZH posts real news and even better when the posters grab that torch and shine the light in every corner.

If I'd never found this site, I'd totally be a hermit in the hills by now.

Ripped Chunk's picture

These Apple device junkies are unlike any other life form you will ever encounter. Take it as a compliment.