Cramer: Apple Management Is in 'Complete Denial'

Analysts are revolting against Apple CEO Tim Cook, and that was clear in the company's "graphically painful" conference call, CNBC's Jim Cramer said Wednesday.

"Given the fact that tech stocks have bottomed at a certain yield, it is possible that they could put in a floor soon. When everyone downgrades, you tend to want to buy and not sell," Cramer said, giving the positives of Apple's current situation.

However, "management here is now despised," he said on "Squawk on the Street."

"This is the kind of conference call that was a revolt against management. There isn't anything about this call that isn't the people rising up against Tim Cook."

(Read More: Apple Not a 'Real' Tech Firm Anymore: Venture Capitalist)

"What you have is a situation where management is in complete denial. What people wanted was some growth, what people wanted was new products and what people wanted was a change of discourse."

In Tuesday's earnings report, Apple said it will expand its share repurchase program to $60 billion from the $10 billion level announced last year and boost its quarterly dividend to $3.05 per share. Combined, the company will return $100 billion to shareholders by the end of 2015.

(Read More: Apple Earnings Beat, Company Hikes Dividend)

Cramer said Apple would be better off making a dramatic acquisition—such as Netflix, Dish Network or Sprint—instead of using their cash to buy back stock. If they did this, "they would have owned the living room, and the stock would be at $550 right now," he said. He also said the company is lacking enough retail presence in major markets like China.

"The conference call is just a great Greek tragedy to me, The chorus is saying: 'Look, you're not as good as you think you are, so you can't charge what you used to,'" he said. "It was a graphically painful conference call, because they don't like Tim Cook."

(Related: Apple's Roller-Coaster Ride to Set Market Tone)

Shareholders will be "beleaguered today" and in the wake of negative analyst commentary are likely to sell, "precisely when the stock probably could bottom," he said.

"Do I want this stock now? With this yield, yes. I'm glad for once my charitable trust has a position in Apple," Cramer said later in the show.

Cramer said that the company is "doing many things right" but what ultimately matters is to people is how the stock performs.

Cramer's advice to Cook: "Go social, mobile and cloud and make a series of very large and noisy acquisitions that would change the course of Apple so that they don't need to go through cable to own the living room."

"I have Apple products, I love them, I think Apple is doing a great job. But at the same time, this is a stock market. This is a sheer, difficult, harsh, judging machine that is the stock market. I think Tim Cook is making a great product. But we already have one and we already have the stock and we don't want it as much. The analyst community is harsh," he said.

(Related: For Suppliers, Good Apple Earnings Aren't Enough)

"You have to blow it up and take it into a new direction," Cramer said, likening Apple toProcter & Gamble, which in the past year followed analyst suggestions that led to a strong run upward in the stock.

___________________________
Disclosures:

Cramer's charitable trust owns shares of Apple.

___________________________

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

Disclaimer