Jim Cramer believes that Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook, deserves more credit than he is getting in light of the iPhone-maker’s deal to acquire Beats Electronics.
Sharing his thoughts to viewers of Mad Money, Cramer told the audience that the scrutiny Apple Inc. (NASDAQ:AAPL) and its CEO is subjected to “is downright insane, it’s lunacy”. He added that he has heard people say that the Beats acquisition is a big waste of money for the tech giant, that it “is just a way to get some smart people to work for the company, that the deal does not solve the company’s real music problems, that it is a sign of desperation.”
Cramer vehemently disagreed with people saying that Cook made a wrong decision to buy Beats, saying:
“But you know what, who can really complain here about this guy? Apple Inc. (NASDAQ:AAPL)’s stock has been a rocket having moved from $400 and change to $634 in one year’s time, which tells me that Tim Cook is doing a lot of things right, not a lot of things wrong, and that he deserves the benefit of the doubt.”
According to Cramer, the Apple Inc. (NASDAQ:AAPL)’s CEO has been a good listener. Cramer added that in the last year, Cook has listened to shareholders and analysts. The Cupertino, California-based giant has sold a lot of the most recent lineup of iPhones when people were worried about iPhone sales. Also, Cook has responded great to criticisms that the company has not done enough in China.
Crammer added that Cook has implemented the biggest, most aggressive and most thoughtful buyback program when shareholders like Carl Icahn complained that “he was not being aggressive and opportunistic about returning capital”. The Mad Money host also pointed out Cook’s move to get Angela Ahrendts (former CEO of Burberry) to bolster the retail operations of Apple Inc. (NASDAQ:AAPL).
Cramer pointed out that Cook’s move to get Dr. Dre and Jimmy Iovine makes sense, particularly because of the decline of Apple Inc. (NASDAQ:AAPL)’s iTunes business.
“Cook has recognized what his company needs to do, whether it be to reinvent the cellphone, fix the music, make the retail stores more relevant, help out his own stock. He has relied on experts’ insights and if they aren’t there, he’s going out to get them or at least listens to them. He’s done it without complaints, methodically, intelligently. I just wish for once we had more Cooks in the stock market kitchen. Life will be a lot easier and we’d make a heck of a lot more money,” Cramer concluded.