But the analysts made a lot of mistakes along the way, Cramer said, especially going into earnings. While the analyst community expected Apple’s earnings to disappoint, it actually delivered a bigger beat than usual. Its revenues totaled $39.2 million, which is roughly $2.4 billion more than what Wall Street had expected, and a year-over-year increase of 59 percent. Apple’s net income increased 94 percent year-over-year, which translates into $12.30 of earnings per share and handily soared over the Street’s most bullish estimates.
Apple sold 35.1 million iPhones — which accounts for about half its revenue — in the March quarter, outpacing the 30 million or so expected by Wall Street analysts. Earlier this earnings season, wireless providers AT&T and Verizon Communications said they had activated far fewer iPhones than expected. In turn, analysts thought Apple’s iPhone sales would disappoint. This analysis proved to be errant, though, because AT&T and Verizon just don’t matter like they used to, Cramer said. Where the two carriers used to account for 31 percent of total iPhone sales, they now make up just 21 percent of total iPhone sales because Sprint Nextel sold 1.5 million iPhones.Page 2 of 4 | Prev Page | Next Page