TLDR
- Jim Cramer has already placed his pre-order for Apple’s new iPhone 17 Air, showing personal enthusiasm for the product
- Apple was called a “serial repurchaser” due to its habit of buying back stock at a 4% annual rate
- The iPhone 17 Air launch featured a thinner design and price increases, though carrier subsidies will absorb most consumer impact
- Apple stock dropped 1.5% on launch day, which Cramer notes is typical for iPhone announcement events
- Historical data shows Apple stock has gained an average of 13% in the year following iPhone launches over the past five years
Apple stock fell 1.5% following the iPhone 17 Air launch announcement, but CNBC’s Jim Cramer remains optimistic about the tech giant’s prospects. The stock decline follows a familiar pattern that has played out at iPhone launches over recent years.
Cramer revealed he has already placed his order for the new iPhone 17 Air during his recent appearance on CNBC. The device caught attention primarily for its ultra-thin design, living up to the “Air” branding that Apple has used across its product lineup.
The new iPhone comes with price increases, though Cramer noted these weren’t as steep as he initially expected. He pointed out that wireless carriers heavily subsidize these devices, which means consumers often don’t feel the full impact of price hikes.
Apple’s stock performance on iPhone launch days has become predictable. The company’s shares have been down or flat after the annual iPhone announcement in four out of the last five years.
This pattern doesn’t concern Cramer, who emphasized that launch day performance isn’t the metric that matters. He called it a typical “sell the news” event where investors take profits after months of anticipation.
Historical Performance Points to Gains
The more telling statistic, according to Cramer, lies in the one-year performance following iPhone launches. Apple stock has rallied an average of 13% in the year after new iPhone launches over the past five years.
The track record is perfect over this timeframe. Apple shares were up in every single one of those post-launch years, making it a reliable pattern for investors to consider.
Cramer described this 13% average gain as “real money” and used it as justification for his bullish stance on the stock. He specifically recommended owning Apple rather than trading it for short-term gains.
Stock Buyback Program Draws Attention
Beyond the iPhone launch, Cramer highlighted Apple’s aggressive stock repurchase program. He called the company “addicted to buying back its own stock” and labeled it a “serial repurchaser.”
Apple has been buying back stock at approximately 4% annually. Cramer views this as a sign that management consistently believes the stock is undervalued, even when they don’t explicitly state this position.
The timing of these buybacks coincides with what Cramer sees as an opportune moment. The iPhone 17 Air launch provides a catalyst that could drive the stock higher over the coming months.
Cramer also mentioned Apple’s partnership with Corning, which supplies glass for iPhone screens. CEO Tim Cook appeared at Corning’s factory, and Apple has invested $2.5 billion in the glass manufacturer.
Cook stated that every iPhone sold globally would feature glass from Corning’s Harrodsburg factory. This partnership represents a key supply chain relationship for Apple’s flagship product.
The iPhone 17 Air’s camera capabilities and filming features received particular attention during the launch event. These improvements target consumers who prioritize photography and video recording on their mobile devices.
Apple’s latest device launch maintains the company’s annual product refresh cycle that has become central to its revenue model and stock performance patterns.
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