Keep trying to believe folks. It's important that you believe and buy buy buy so that your bags can be filled immediately prior to the rug being pulled out from under you.
What am I referring to here? Specifically this -- first we had Sandisk say that there was a problem with demand in the flash memory business and now Qualcomm, the primary maker of cellphone RF chipsets used by companies like Apple, misses on forward guidance.
Both firms got skull****ed.
They don't ring a bell at the top folks. But they do usually give you plenty of warning, if you're paying attention, that the high-fliers that you've all fallen in love with are about to take an iDirtNap.
Sure, Apple was up $25 yesterday, although right now it's down $5 and was down more than $10 earlier today. The "buy buy buy buy!" jackassery, led by people like Cramer, is nothing new on Fraud Street.
You've been given all the warnings you're entitled to and then more. If you ignore them here you deserve what you get. Two of the most-connected suppliers to mobile device construction -- Qualcomm and Sandisk -- have warned, missed or both, citing soft demand in forward expectations.
Now maybe all the suppliers don't need to actually make things in order for final products to be produced. Maybe Apple has figured out how to fill their devices with magic pixie dust instead of broadband chipsets and flash memory too.
If you believe any of that you need a lobotomy.
Bottom line: Mobile device saturation is being achieved and now the cost-shifted models that have been used and abused by various companies for the last several years are coming under attack as margins compress up and down the line. This is is a trend, not a one-off.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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