Jim Cramer says Zune is dead, Buy Apple

Posted Nov 15th 2006 6:11PM by Jon Ogg
Filed under: After the Bell, Analyst Reports, Apple Inc (AAPL)

On tonight's MAD MONEY segment on CNBC, Cramer went over a stock where it was hit because of competition. He said Microsoft Corporation (NASDAQ: MSFT) just took aim at Apple Computer, Inc. (NASDAQ: AAPL) with Zune's launch against iPod.

Cramer said "the Microsoft launch is officially being pronounced a dud!"...... That is not "dude". He thinks AAPl is a fantastic must own stock and the Zune he even noted as the "Edsel," an old Ford failed car launch that was a dud. He thinks the Zune colors stink and the Zune music store is also a dud. He also said that the fact that it is made by Microsoft, and kids and many others hate them.

He said the Zune is not Vista compatible. It is a rejiggered Toshiba and if they want to take on AAPL they should do a better design. Zune's rankings are also lower than expected. At Amazon.com this was only #12 yesterday on electronics and #7 today. If it was great on launch it would be #1.

Cramer said that AAPl has been impervious to this launch. He said they still have a tiny market share, but they have 50% of market share with upper-end college students. He thinks their retail initiative is great and they are even testing Mac sales at Best Buy.

After Cramer said this AAPL traded up after-hours an additional 0.8% to $84.75, although it closed down 1.1% at $84.05 today. Cramer said he thinks AAPL is a $100.00 stock "by the end of the year."

Tags: apple, ipod, microsoft, zune

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Reader Comments (Page 1 of 1)

11-15-2006 @ 10:29PM

Andy said...

This is the boondoggle of all time. It doesn't comfortably fit in your pocket, instead of the pleasing pastel colors of the Ipod the Zune is dark brown, and it isn't compatable with Vista. How could this happen? - I'll tell you how. Microsoft is a beauracy and everybody is protecting their turf and their control zone. This is what we have all been hearing about Microsoft and here is the result. and the proof.

11-16-2006 @ 6:42AM

Glenn said...

You can't beat the new little chip size ipod shuffle. It is small enough to clip to your pocket or lapel of a shirt; holds 254 songs and the sound quality is unbelievable. For $79 you can't beat it. Truly a great product. Go Apple!

11-16-2006 @ 7:53AM

Michael Schneider said...

Most commentators didn't expect Zune to do that well for Microsoft so it has low expectations and any gains will be good-- most, like Cramer, agree the Vista program will be a smashing success for Microsoft.

Jim Cramer has been right about Apple stock for some time(he's on Barrelomoney's Who Got What Right Good Call List for that). He has recommended at least 117 tech stocks since his show started and those interested can find a free list at www.Barrelomoney.com.

Barrelomoney also expects Apple to continue higher for the Christamas season at least since the iPod is perhaps the only must have product so far identified (though new video games and the new video consoles should also be hot items).

11-16-2006 @ 8:31AM

Jonathan Allen said...

It looks like both the 5th gen and 5.5 gen iPod video players are selling better than the Zune on amazon. Come on! A discontinued product? Suck on that, Bill.

11-16-2006 @ 10:04AM

Zune-Online.com said...

I won't get into the Zune vs iPod debate.

Just a comment on the Vista Support. Officially Microsoft said that this will be supported when Vista consumer edition gets released in January.

But there are rumors that a first Beta version for Windows Vista will be released in a few weeks.

Check:
http://www.zune-online.com/news/zune/zune-software-vista-support.html
http://www.zune-online.com/news/zune/zune-software-beta-for-vista-soon.html