Veteran analyst Jim Cramer sees something in Apple’s (AAPL) newest launch that is more than a motive for its prospects to buy another alternative telephone.
After visiting Apple’s Manhattan store, the CNBC host praised the iPhone 18 but reserved his strongest enthusiasm for the foldable Duo. He plans to buy it as a second telephone, a distinction that gives his pleasure an intriguing business angle.
Apple shares have already gained around 23.6% this yr through September 18, raising the stakes for turning product pleasure into gross sales.
For context, Apple unveiled its iPhone 18 Pro lineup and first foldable iPhone on September 9. The Pro fashions reached shops on September 18; Duo availability follows on October 23.
For Cramer, the greater alternative goes beyond higher cameras and battery life. His response suggests Apple could give loyal prospects a recent motive to spend, even when their present telephones still work completely properly.
Jim Cramer calls Apple’s foldable iPhone Duo revolutionary and plans another purchaseKARL MONDON / Getty Images
Cramer sees Apple’s Duo creating a second motive to buy
Cramer’s core Apple argument in the newest episode of MadMoney, is that the Duo can probably generate gross sales beyond the normal alternative cycle. His own plan illustrates the alternative: buy the new iPhone, then add the foldable.
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“I think the 18 is incremental, but the Duo is revolutionary,” he said.
A stronger battery life and cameras can encourage upgrades, but a gadget prospects buy alongside an present telephone could broaden spending per consumer.
Cramer had already purchased the iPhone 18 for its battery life. After attempting the Duo, he instructed Apple executives he needed that gadget too.
“I intend to buy the Duo as a second phone,” he said. “That’s right, two phones.”
He went on to reward the unfolded screen for studying and watching video, while emphasizing the absence of a seen crease.
“I mean, first, it may be foldable, but there’s no crease. I mean, none.”
That comes as a shock as a number of hands-on testers reported a clear seen crease on the Duo.
He also described a gadget he expected to use always while working or touring.
For shareholders, the potential is big: incremental {hardware} income rather than merely shifting consumers between iPhone fashions. But Cramer’s willingness to own two telephones stays an anecdote, not evidence of widespread demand.
The industrial check is whether enough prospects see a distinct on a regular basis objective for the Duo to justify shopping for it alongside another gadget, which launches at a steep price tag of $2,000.
Cramer sees a cybersecurity alternative inside the AI scare
Cramer’s broader takeaway on the technology space is that AI security fears could create an alternative for corporations that control access to digital systems.
He singled out Okta after talking with CEO Todd McKinnon, arguing that id verification could help handle threats from autonomous AI brokers.
“He calmly explained that his company’s specialty, identity verification, extends to AI agents,” Cramer said.
That expands the investment argument beyond defending worker logins. As companies deploy software program brokers to carry out duties, they also have to decide which brokers can access delicate info and take consequential actions.
Cramer said McKinnon expressed confidence that figuring out brokers would help monitor and stop them.
“They do have identities, and once you have the identity, he knows their whereabouts.”
For traders, that suggests another means to take part in AI spending, which entails the security infrastructure needed to support deployment. More succesful brokers will increase demand for controls over their permissions and exercise.
Cramer pointed to Okta’s upcoming Wednesday analyst assembly as a probability to hear more.
“Why don’t they like talk to the cybersecurity guys?” he requested of AI corporations raising alarms.
McKinnon’s confidence, as relayed by Cramer, stays a claim.
Investors should look for buyer adoption and gross sales evidence to validate the alternative.
Apple’s premium leaves little room for an atypical improve cycle
Apple’s steep valuation setup underscores that traders already expect a profitable product cycle.
Cramer’s enthusiasm strengthens the demand argument, but the earnings outlook units a harder check for further stock good points.
Seeking Alpha’s information show Apple trading at 38.06 instances ahead non-GAAP earnings, nearly 67% above the sector median and 29% above its five-year average.
Meanwhile, consensus EPS growth slows from 18.37% in fiscal 2026 to 8.58% in fiscal 2027. Even utilizing next yr’s projected $9.59 EPS, traders are paying 35.06 instances earnings.
That mismatch issues: Apple instructions an elevated a number of while expected earnings growth moderates. A well-liked Duo launch would need to improve revenue expectations to strengthen the valuation case.
Consider an illustrative sensitivity. Applying Apple’s historic ahead a number of of 29.41 to fiscal 2027 EPS produces roughly $282 per share, about 16% below the price implied by the information.
The core query is whether Duo purchases add spending or substitute other premium iPhone gross sales. Investors should watch product combine, margins and upward EPS revisions.
Carrier incentives might proceed to support demand, as Cramer argues. But the stronger stock catalyst would be evidence that Apple can successfully convert that demand into earnings growth exceeding at present’s consensus forecasts.
