Cramer: The Holy Grail behind Apple’s revenue

Jim Cramer sees a transformation happening in how companies gain revenue, and it is clear to him that not all revenues are created equally.

"The Holy Grail here is service revenue that customers don't mind paying for because it represents a valuable asset that they cannot live without," the "Mad Money" host said.

Companies like Costco, Netflix, Amazon Prime and Apple have all figured out the value that service revenues play. Customers don't mind paying these charges because it's not like some sort of a tax or bill that they resent handing over their hard-earned money for.

Apple IPhone
Chesnot | Getty Images
Apple IPhone

"Memo to Reed Hastings, I would easily pay double for it. Why not? Netflix is a ridiculous bargain given how much I love the original content and I'm addicted to their shows," Cramer said.

Read more from Mad Money with Jim Cramer

Cramer Remix: What history's taught us about Apple
Tim Cook: The most important thing for Apple long term
Cramer: Tim Cook cops to a conference call error

In his interview with Apple CEO Tim Cook on Monday, Cramer discussed how fast Apple's service revenues are growing, up more than 20 percent in its last quarter. With 1 billion Apple devices in use around the world, Cramer believes that investors will pay up for Apple's stock because of that service stream.

The beauty of service revenue is that it is recurring, predictable and lucrative.

"One day people will realize that you can't value Apple only for its devices. By the time that they recognize that fact, though, I bet Apple's stock will be higher, not lower, because we will put a big value on that revenue stream," Cramer said.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website?