Cramer: Best Buy banking on new iPhone 7

Cramer's Mad Dash: Best Buy 'not bad'
Cramer's Mad Dash: Best Buy 'not bad'

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.

The exterior of a Best Buy store in San Bruno, California.
Best Buy forecasts Q1 sales, profit below estimates

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.