Cramer: Best Buy banking on new iPhone 7

Best Buy's betting big on the new iPhone being a success, CNBC's Jim Cramer said Thursday.

"When I hear second half being strong from a place that sells tablets, that sells TV and mobile phones, I think the read-through here is the Apple [iPhone] 7 is what they're banking on," Cramer said on "Squawk on the Street."

Apple is expected to release its latest iPhone later this year.

Cramer made his remarks after Best Buy reported quarterly earnings of $1.53 a share and revenue of $13.62 billion, beating expectations. The company also issued a special dividend of 45 cents a share. Same-store sales, however, declined 1.7 percent.

The retailer's stock was up 1 percent midmorning Thursday. "When Best Buy reported, immediately people looked at the down comps and said 'wait a second, this is a bad story again,'" Cramer said.

"But … upon further review, they get a special dividend, the company's buying back a lot of stock and they're talking about the second half being strong."

Disclosure: Cramer's trust owned shares of Apple when this article was published, but did not own Best Buy stock.