Cramer Bets Big on Apple's Foldable Future
Apple (NASDAQ:AAPL) has received a fresh endorsement from Jim Cramer, who recommended buying shares before its new foldable phone, the Duo, hits stores on October 23. The Duo is priced at $1,999 and is expected to be an addition to Apple's ecosystem, with features like Handoff allowing users to carry both a foldable and a Pro iPhone.
The move comes despite Cramer previously stating that the iPhone 18 would not rally the stock. However, the stock has already reached a 52-week high of $341.07 on September 25, and Apple is up 24.77% year to date and 33.45% over the past year.
Supply constraints and memory costs could cap the launch of the Duo, with management guiding revenue growth of 9% to 11% and gross margin of 47% to 48%. The company has also faced competition from Meta's Muse model, which Bank of America highlighted as a potential threat to Apple.
Investors will be watching for signs of success from the Duo's launch, including shipping times and Siri AI adoption. The company's fiscal Q4 earnings report will also provide insight into whether the Duo thesis is reaching the income statement.