- CNBC’s Jim Cramer reiterated his long-standing stance on Apple on Friday, contradicting analysts who were concerned about recent earnings data.
- Cramer’s highlighted Apple’s loyal customer base and growing international market.
CNBC’s Jim Cramer reiterated his long-standing stance on Apple on Friday, telling investors that the stock will retain its value because of the company’s stable customer base.
Cramer said many on Wall Street are too focused on current earnings data rather than the company’s long-term potential and its prominent role in consumer culture.
“You see how static Apple seems to be with only incremental growth,” Cramer said of analysts. “I think of it as an ecosystem of two billion active devices, all of which are candidates for upgrading to the latest and greatest models across all of the company’s offerings.”
Apple’s Thursday report beat analysts’ expectations for revenue and earnings per share, but also saw the company’s overall revenue decline for the fourth straight quarter. Investors also worried about Apple’s sales in China, which were essentially flat year-over-year, as well as a decline in sales of Macs and iPads.
Cramer said he is more focused on Apple’s growth in other major international markets such as India, Brazil, Saudi Arabia and Vietnam. He said each new Apple buyer can be considered a “lifelong customer” who is likely to buy more of Apple’s wide range of products in the future. Cramer also said he believes Apple’s strong services revenue is making up for weakness in hardware.
“Unless these analysts understand that there are eight billion people in this world and every one of them could be an Apple customer in one way or another, with the lifetime value of each customer potentially worth thousands of dollars on average, then they will “I’ll never understand why Apple is a winner,” he said. “But that’s great for you, great for me, because it means you continue to have opportunities to buy this extremely high-quality company when it’s weak, so you too can own Apple and not trade it.”
Jim Cramer’s Guide to Investing
Click here to download Jim Cramer’s Guide to Investing Free to help you build long-term wealth and invest smarter.
Join the CNBC Investing Club now to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple.