Cramer: Don’t trade Apple on reports about iPhone parts — they’ve been ‘proven wrong’ in the past

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CNBC’s Jim Cramer said he’s skeptical of any discouraging reports surrounding Apple‘s iPhones or its suppliers because the articles have been proven wrong many times in the past.

Cramer spoke on Friday as Apple’s stock was losing more than 1 percent after the tech giant, according to Japan’s Nikkei news service, told its supply chain to make 20 percent fewer parts for iPhones in the second half of 2018. Many Apple suppliers and chipmakers also saw their stocks drop on the Nikkei report.

“The reason we’re so jaundiced about [these reports] is we’ve heard this time and time again, and they’ve been proven completely wrong,” said Cramer whose charitable trust owns shares of Apple.

“Most recently, the last quarter was supposed to be a disappointment,” Cramer said on “Squawk on the Street.” Media reports at the time were “100 percent sources, sources, sources,” he added. Those dire predictions that hit the stock in the lead up to last month’s earnings report turned out to be wrong, and the stock then soared.

Ahead of the iPhone maker’s second-quarter results, which beat exceptions, analysts had effectively eviscerated the estimates with downbeat supplier surveys and doom-spelling notes about weak China sales, the “Mad Money” host said at the time.

“The company sold more iPhones than most of the bullish analysts thought, including the X, which the community had derided endlessly,” Cramer said in May.

Cramer on Friday asked how it’s possible for Wall Sreet analysts to believe media reports on iPhone demand, given how much work Apple does with different suppliers.

“I come at it in a very skeptical way because Apple has a number of suppliers, and you don’t necessarily get the right picture from one,” Cramer said.

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