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."
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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.