iBubble: Apple's Market Cap Is Now The Same As The Entire Retail Sector, Bigger Than All The Semis

Tyler Durden's picture


This is simply stunning: one company, which has two flagship products, has a bigger market cap than the entire Semiconductor space, and is just shy of the entire S&P Retail sector.

The 216 hedge funds in the name as of December 31 is hopelessly stale. We are certain that by now this number is at least 250, if not 300.


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Wed, 02/29/2012 - 00:06 | 2206855 laomei
laomei's picture

The difference is that it has become an "obtainable status symbol", if you understand the meaning of that.


Once a new one comes out, if you don't snatch it up asap, you are left holding "the old one".  Old models are routinely sold off as second hand and it's "the poors" who buy them up.  You don't want to be a poor now do you?  Surely you can afford a few hundred bucks so that for the next 6 months you can whip out your class status verification item in public and let all those around you know "i am not poor".


You get a very interesting dynamic over here in China of who actually buys this crap.  It sure as hell ain't business or anyone with money.  We stick to practical phones.  A good droid for a smartphone and a very very basic nokia as a secondary that keeps battery life forever..  The people buying apple crap are generally on the low rung.  Starting at around 5000+ RMB a month, they will gladly piss away an entire month's wages (or more) to obtain their precious status symbol.  So they can whip it out in public and be annoying.... New model comes out? Be sure to let everyone know you sold the old phone for 500 kuai and you have the new one.  Make it perfectly clear that the old one is garbage for poor people.

Housing is too expensive to most people to have as that face-giving status symbol.  Cars are too prevalent and really nice ones are way too expensive for most.  LV bags are pricey and there are too many fakes.  Basically this is the new "look how much money I am able to waste on stupid shit, I'm not poor".  And anyone who actually has money doesn't care.  It goes hand in hand with expensive bottles of maotai and zhonghua... and that's it. It's stupid.  It's not even a good phone compared to what's on the market for far less... ditto goes with the ipad... which has yet to have any damned purpose at all worthwhile.  It's pretty funny to watch all the mouthbreathing idiots flock to this consumer crap, especially when they really can't afford it.

Tue, 02/28/2012 - 15:21 | 2205002 Cdad
Cdad's picture

Thank you Tyler...and nice timing as J. "the top tick" Teranova capitulates on his AAPL short...about one hour ago.   This one will rival his top tick call to buy JCP on a day when the stock was up 18% on the session because of the announcement that Ron Johnson of AAPL was joining JCP.  Of course, the stock almost immediatly collapsed.

You just have to love J. Teranova as a permanent consensus, tick chasing idiot.



Tue, 02/28/2012 - 15:22 | 2205031 Squid Vicious
Squid Vicious's picture

I'll always remember his "you gotta be long RIMM here" call at $83... maybe he's related to momotarder?

Tue, 02/28/2012 - 15:46 | 2205170 El Hosel
El Hosel's picture

....   AKA Eddie Munster

Tue, 02/28/2012 - 15:18 | 2205006 Sophist Economicus
Sophist Economicus's picture


Tue, 02/28/2012 - 15:19 | 2205009 MacAttack2
MacAttack2's picture

I'll sell when the market cap equals the cap of teh S&P 500!  Doh!

Tue, 02/28/2012 - 15:20 | 2205017 orangedrinkandchips
orangedrinkandchips's picture

sustainable....enough said

Tue, 02/28/2012 - 18:33 | 2205951 DavidC
DavidC's picture

Doubtful...enough said.


Tue, 02/28/2012 - 15:21 | 2205022 Moneyswirth
Moneyswirth's picture


Tue, 02/28/2012 - 15:21 | 2205028 lasvegaspersona
lasvegaspersona's picture

We are all Apple now.....chant

Tue, 02/28/2012 - 15:23 | 2205032 JohnKozac
JohnKozac's picture

Will Iran accept used iPads for oil?  Seems like every 16 year old has 2 or 3 of them in his back pocket.

Tue, 02/28/2012 - 15:22 | 2205034 Gubbmint Cheese
Gubbmint Cheese's picture


Tue, 02/28/2012 - 15:22 | 2205035 orangedrinkandchips
orangedrinkandchips's picture


Tue, 02/28/2012 - 15:22 | 2205037 Seize Mars
Seize Mars's picture


Tue, 02/28/2012 - 15:23 | 2205041 Moneyswirth
Moneyswirth's picture

March will indeed be a month of action and excitement----iPad 3, war in the Middle East, colonization of Europe, collapse of the US economy....

Fun times!

Tue, 02/28/2012 - 15:47 | 2205177 zx12r
zx12r's picture

In America, as long as their Iphones keep working, no one will notice.

Tue, 02/28/2012 - 15:24 | 2205043 Gringo Viejo
Gringo Viejo's picture

America's greatest enterprise.....a toy company. Somehow appropriate.

Tue, 02/28/2012 - 15:24 | 2205045 carbonmutant
carbonmutant's picture

Could Apple do a better job than the FED?

Tue, 02/28/2012 - 15:28 | 2205072 Moneyswirth
Moneyswirth's picture

Well, AAPL has created more wealth than the Fed.  Thats a start I guess...

Tue, 02/28/2012 - 15:24 | 2205046 max2205
max2205's picture


Tue, 02/28/2012 - 15:24 | 2205048 q99x2
q99x2's picture

The biggest Apple is the one that is TBTF.

If you don't own Apple products (1 each) you will be placed on the FBI's suspected terrorist list.

Tue, 02/28/2012 - 15:28 | 2205071 mind_imminst
mind_imminst's picture

Great comment. Apple IS becoming so big and so key to the market that there is probably some idiot bureaucrat that is thinking about putting  them in the TBTF government protection plan. If the iBubble pops, a whole lot of markets are going down fast.

Tue, 02/28/2012 - 16:46 | 2205465 NotApplicable
NotApplicable's picture

Someday, every government worker will have an iPad to connect to their Google workspace.

Tue, 02/28/2012 - 15:38 | 2205049 Mercury
Mercury's picture

Probably is bigger than Retail ex-Apple related products.

World GDP / $533AAPL + (-1 Steve Jobs) = short

Tue, 02/28/2012 - 15:27 | 2205062 HD
HD's picture

Oh Wow, Oh Wow, Oh Wow

Tue, 02/28/2012 - 15:27 | 2205063 css1971
css1971's picture

Proof that Keynsian economics works. People clearly are eating iPad.

Tue, 02/28/2012 - 15:35 | 2205103 Diet Coke and F...
Diet Coke and Floozies's picture

I'm soooo hungry... Now I know why!

Tue, 02/28/2012 - 15:40 | 2205135 LouisDega
LouisDega's picture

I tried that once. Its an over rated experience. 

Tue, 02/28/2012 - 15:27 | 2205064 Mongo
Mongo's picture

What if apple really tasted like bubble, how would the machines really know the difference?

Tue, 02/28/2012 - 15:32 | 2205093 iraskin
iraskin's picture

everybody who hates apple is an icocksucker


Tue, 02/28/2012 - 15:34 | 2205098 Diet Coke and F...
Diet Coke and Floozies's picture

ipop the ibubble...

Tue, 02/28/2012 - 15:35 | 2205106 Temporalist
Temporalist's picture

Why is everyone complaining? Now that people can't afford gas they can get that iPad they've been dying slowly for to distract them from reality.

Tue, 02/28/2012 - 15:35 | 2205109 kralizec
kralizec's picture

iSpy with my little i

Tue, 02/28/2012 - 15:37 | 2205121 Diet Coke and F...
Diet Coke and Floozies's picture

Something that isn't sustainable?

Tue, 02/28/2012 - 15:55 | 2205217 kralizec
kralizec's picture

Aye.  There's a lot of that going around.

Tue, 02/28/2012 - 15:37 | 2205119 j0nx
j0nx's picture

Amazing what you can do with an army of cheap slave labor manufacturing your goods.

Tue, 02/28/2012 - 15:38 | 2205123 Deep79
Deep79's picture

What's the common thread? All of these traders are tethered to the housing recovery, which Kass believes is about to get underway. (ETrade has a large home equity loan portfolio, says Kass)

“I do think we’re facing a lengthy and durable recovery in the housing market and the possibility exists that it lasts for the balance of the decade.

Although Kass concedes the sector still faces headwinds, he believes ultimately one factor trumps all others -- mortgage rates are very, very low. 

Kass thinks that as the economy recovers people just won’t be able to resist the temptation of moving into a new house – “interest rates are at the lowest they’ve been in several generations,” he says. 

In other words, buying a home will become a smart use of capital.



Tyler, Kass said this, you gotta put this on file

Tue, 02/28/2012 - 15:46 | 2205161 haskelslocal
haskelslocal's picture

Do you know what the equivilent of bulldozing 5M houses equates to? Simply fund the banks to REPO homes outright and keep the "overhang" off the market in perpetuity.

Since deflation of the buble necessitiates balance of inventory, if one doesn't remove supply one must only hoard it, destroy it or render it obsolesent.

This, coupled with favorable tax laws, wakens the recovery when those busy looking for truths are caught off gaurd. (Which they must be in order to game the system.) 

Tue, 02/28/2012 - 16:52 | 2205505 NotApplicable
NotApplicable's picture

BTW, urban "blight" is starting to come back into vogue. A city nearby recently classified over half of its entire area as blighted, allegedly in order to obtain federal block grants. Funny thing though, the truly blighted areas are the ones they blighted and dozed in the 70's to create the projects.

Tue, 02/28/2012 - 15:40 | 2205133 haskelslocal
haskelslocal's picture

Looking back to 2007 and comparing the trends, this either means:

a) semi-conductor sector is 4x under valuded here.

b) Apple is 4x over valued

c) A combination of both.

Using this logic, either Apple crashes or Semi-conductor sector sees a modest increase that makes sense of The Apple ascent.

Using slight of hand and to "sustain" the illusion, it's patern recognition time. Go with the Semi-Sector completing the cycle.


Tue, 02/28/2012 - 15:42 | 2205144 YesWeKahn
YesWeKahn's picture

USA is apple. Apple is USA. Get it?

Tue, 02/28/2012 - 15:42 | 2205145 Shizzmoney
Shizzmoney's picture

Jim Cramer says Domino's Pizza (dpz) is a tech stock because they have an Apple app LOL

Tue, 02/28/2012 - 15:43 | 2205148 monopoly
monopoly's picture

Ya know I love AAPL. I love their products and have been using them for over 20 years. A well run machine is AAPL. And kudos to all they do.....But this is ridiculous. No company is worth such a valuation and at some point what a short. I do not touch it.

Then of course their is CMG, look at their 2 year chart and laugh. Just Burritos, that's all. Talk about a total farce.

At least AAPL has more than one product. It will all be righted, of that I have no doubt, but first we must reelect our king and his knaves. Then, it will all come together.

This market makes Capone and his Mafia look like amateurs. 

Tue, 02/28/2012 - 16:56 | 2205531 NotApplicable
NotApplicable's picture

But those are ethical burritos, man!

Ethical behavior doesn't come cheap, you know.

Tue, 02/28/2012 - 15:44 | 2205158 iraskin
iraskin's picture

I mean it's just getting out of whack. This company has a broken stock between $420 and $430 but it acts as if nothing really matters. We all know apple is not growing from anymore. And believe when I say that, I tried to patent the name Iphone in 2005, yet found out that Cisco owned it, and years later Isteve stole it. How do we bring it down guys back to reality? I never had an Ipod cuz I knew it was just Sony headphones with Toshiba Harddrive based on idea stolen from Creative. The app store concept was stolen from facebook, and the phone itself was on the shelf for years by HTC. He was a packaging spinoff thief, may he RIP. However, lets bring the planet to reality from icock sucking of cheapest parts to confuse people that they have to live in Ibubble when the basic thing as Itunes doesn't cut the bar anymore setup by Sony musich alliance with Google. The Ecockosystem is not gonna work. I have a 6 sense for all of this.  Yes he accelerated our dream, but now it's a major major slow down for the population that's turning zombie because it is not open source, and it only works if even the service providers suck on on it. It's a very big squeeze, time to rebel this shit.


Tue, 02/28/2012 - 15:45 | 2205162 juggalo1
juggalo1's picture

Put your money where your mouth is.  Short the sucker, and make a fortune or STFU.

Tue, 02/28/2012 - 15:45 | 2205164 marcusfenix
marcusfenix's picture

will there be an app for the icollapse?

Tue, 02/28/2012 - 15:48 | 2205179 iraskin
iraskin's picture

Apple is priced on a curve that simply makes AT&T & Verizon tools rather than profit makers, and it posts their margins. It takes a maniac to get there, but it is what it is I guess for now, until AT&T & Verizon stop on sucking Icock.

Tue, 02/28/2012 - 15:48 | 2205180 iraskin
iraskin's picture

Apple is priced on a curve that simply makes AT&T & Verizon tools rather than profit makers, and it posts their margins. It takes a maniac to get there, but it is what it is I guess for now, until AT&T & Verizon stop on sucking Icock.

Tue, 02/28/2012 - 15:48 | 2205181 Jena
Jena's picture

I don't know what I'm missing.

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