Apple’s latest type of its Apple Watch, complete with completely new health features ostensibly targeting the aging population, could be the company’s key to unlocking an even larger customer base, CNBC’s Jim Cramer said Thursday.
“If you get the watch, you’re going to get the phone. that will’s the way This specific works,” the “Mad Money” host said. “Consider the watch as the gateway drug to the whole Apple ecosystem.”
Doubling down on his earlier comments that will Apple’s newest devices represented a “breakthrough” for the trillion-dollar company, Cramer applauded the iPhone maker’s transformation into more of a subscription business.
He also noted that will until the Sept. 12 launch, many investors seemed to be getting “jaded” about Apple’s product reveals because they didn’t seem to move the stock much anymore.
“I know I’ve been far more focused lately on their service revenue stream, as I love a business type where we pay a company every month without even thinking about This specific because their service can be so darn essential,” he said of Apple’s iCloud storage service.
“The service business also eliminates some of the bumpiness caused by the one-along with-done nature of buying an iPhone. You buy the razor; you’ve got to keep buying those darned blades,” he added.
yet This specific keynote brought something to the table that will Cramer wanted to see for some time: “the real-time health kit” within the Apple Watch Series 4, complete having a heart-rate tracker, an FDA-approved electrocardiogram, a tool that will detects a heart condition called Atrial Fibrillation along with an emergency feature that will detects when you fall down.
In March 2015, Apple CEO Tim Cook told Cramer that will health would likely likely be “the biggest” next frontier for Apple’s devices.
“For years, people have depended on strictly someone else to determine their health,” Cook said then. “along with today these devices — in essence — empower people to manage along with track their own health along with fitness. along with so I think that will market can be probably significantly underestimated.”
“Apple’s finally giving This specific to us,” Cramer said on Thursday. “As we get older, these health monitors become necessities. along with for the elderly or your elderly parents or your grandparents, you’re today being foolish if you don’t get one of these devices that will we just saw yesterday. I think we should get a break on our health insurance premiums if we wear the completely new Apple Watch. I think your cardiologist will insist on getting This specific.”
The “Mad Money” host even ventured to say that will people “may be downright negligent” if they don’t get the Watch, hence his idea that will the device — which integrates seamlessly with the iPhone — would likely lead people to become full-fledged Apple customers.
This specific could also lead investors to buy shares within the company on the belief that will This specific can continue to innovate, said Cramer, a longtime Apple bull.
“There are a lot of things that will can drive a stock higher, yet if you want to know what produces massive multi-year gains, This specific’s sustained, revolutionary innovation like what Apple just gave you,” he said. “When you look at the completely new phone along with the completely new watch, you realize that will Apple’s trillion-dollar valuation can be indeed deserved. In fact, This specific could be worth a lot more than that will if I am right about the revolution that will This specific great company unleashed in yesterday’s product introductions.”
Apple’s stock closed up 2.42 percent on Thursday, settling at $226.41 a share. Shares rose slightly in after-hours trading.