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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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.

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.



Squid Vicious's picture

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

El Hosel's picture

....   AKA Eddie Munster

MacAttack2's picture

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

orangedrinkandchips's picture

sustainable....enough said

DavidC's picture

Doubtful...enough said.


lasvegaspersona's picture

We are all Apple now.....chant

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.

orangedrinkandchips's picture


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!

zx12r's picture

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

Gringo Viejo's picture

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

carbonmutant's picture

Could Apple do a better job than the FED?

Moneyswirth's picture

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

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.

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.

NotApplicable's picture

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

Mercury's picture

Probably is bigger than Retail ex-Apple related products.

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

HD's picture

Oh Wow, Oh Wow, Oh Wow

css1971's picture

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

Diet Coke and Floozies's picture

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

LouisDega's picture

I tried that once. Its an over rated experience. 

Mongo's picture

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

iraskin's picture

everybody who hates apple is an icocksucker


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.

kralizec's picture

iSpy with my little i

Diet Coke and Floozies's picture

Something that isn't sustainable?

kralizec's picture

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

j0nx's picture

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

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

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.) 

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.

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.


YesWeKahn's picture

USA is apple. Apple is USA. Get it?

Shizzmoney's picture

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

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. 

NotApplicable's picture

But those are ethical burritos, man!

Ethical behavior doesn't come cheap, you know.

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.


juggalo1's picture

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

marcusfenix's picture

will there be an app for the icollapse?

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.

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.

Jena's picture

I don't know what I'm missing.