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Why Apple Watch needs more apps: Cramer

The Apple Watch is in need of more apps as competition from the likes of fitness tracker Fitbit increases, CNBC's Jim Cramer said Monday.

"Fitbit is coming around the home stretch, making people very excited, so I think Apple's got to go a bit further to distinguish itself from Fitbit," Cramer said on "Squawk on the Street."

Cramer made his remarks ahead of Apple's Worldwide Developers Conference in San Francisco, where the tech giant is expected to roll out updates to its iOS and OS X operating systems as well as a new music streaming service.

Read MoreHere's what to expect from the Apple WWDC

"I think Fitbit has a lot more different features than people realize," Cramer added. "Think there's room [in the wearables market] for Fitbit. This is not like the Triple Crown where there's just American Pharoah and then Frosted pulling in second, five lengths behind."

On May 7, Fitbit filed for an initial public offering of up to $100 million, according to an SEC filing.