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Cramer: Apple’s ‘got something that could dazzle’

Apple's move to buy $14 billion worth of its own stock not only got activist investor Carl Icahn off the company's back, the measure also signaled confidence in a big new product, CNBC's Jim Cramer said Tuesday.

"This is going to be [Apple CEO] Tim Cook's chance to show, 'Look people, you wrote us off as a growth stock. We have growth again,' " Cramer said on "Squawk Box." "It's one of my favorite stocks in the market."

(Read more: Is Tim Cook trying to tell you something?)

Cook disclosed the two-week long buyback spree last Thursday in an interview with The Wall Street Journal, months into Icahn's public crusade pushing Apple to use more of its $158 billion cash reserve toward repurchasing its own shares.

In late January, Apple's stock slumped after the tech giant reported disappointing growth numbers, and the company took advantage of the price decrease.

On Monday, Icahn alerted investors that he was ending his buyback campaign and even voiced support for Cook's repurchasing strategy.

(Read more: Cramer: This is a Clint Eastwood-style buyback)

Cramer said on Tuesday that a company wouldn't invest $14 billion into itself if it didn't have a big product lined up.

Apple plans to release the iPhone 6 this year. Also, observers suggest that an iWatch could come out soon, part of a boom in wearable tech devices, such as fitness trackers and smartwatches. Other rumored devices include an Apple television or integrated payment processing with Apple's mobile devices.

(Read more: Betting against Apple? Not so fast: Ex-CEO Sculley)

"Isn't it interesting that Icahn goes away and what does the stock do?" Cramer said. "It led technology yesterday. What does that tell you? That this is a company that was opportunistic and aggressive in buying its stock when it got hit. And you wouldn't do that. You wouldn't spend $14 billion unless you've got something in the pipe that could dazzle."

Disclosure: Cramer's charitable trust owns shares of Apple.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."

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