Icahn Jumps On Apple's iPhone Weakness, Buys More Stock

Apple shares zigged while the market zagged Wednesday, stumbling through a lousy session amid widespread gains a day after unveiling a fresh line of iPhones.

The tech giant drew criticism -- and a handful of analyst downgrades --  for not pricing its low-end phone cheaply enough for emerging markets. Investors also remain impatient for a deal with China Mobile to carry the phones, but one high-profile shareholder isn't worried about the smartphone strategy and seized on Wednesday's slide to add to his stake.

Carl Icahn told CNBC his investment funds bought "quite a bit" of Apple amid the 5% drop and that owning the stock at these levels is a "no-brainer."

Icahn, an extremely successful agitator for change at public companies, has urged Apple CEO Tim Cook to utilize the company's strong balance sheet to buy back more stock, a position he reiterated Wednesday.

What Icahn did not do is criticize Tuesday's iPhone launch or the company's overall strategy, saying it would be presumptuous for him to "micro-manage." That's a bit of hair-splitting from the billionaire, who has thrown his weight around at countless companies in recent years and made his desires clear from management shakeups like Aubrey McClendon's ouster at Chesapeake Energy to corporate breakups like that of Motorola.

Even in cases where Icahn ultimately comes up short, such as his attempt to scuttle Michael Dell's takeover of Dell, his scathing critiques of board and management conduct cast a harsh spotlight. (See "Icahn Admits Defeat At Dell.")

With Apple, Icahn has sounded a cooperative, rather than combative, tone to date. Now though, with the stock having surrendered the gains it enjoyed since Icahn first revealed his position on Twitter, he could prove less patient.

Shares of Apple closed at $467.83 Wednesday, down 5.4% for the session.

Follow @SchaeferStreet