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Cramer: This is what Wall Street doesn't get about the iPhone 7

CNBC's Jim Cramer fired back at analysts Thursday following Wells Fargo downgrade of Apple's stock to "market perform," due to concerns about potential iPhone 7 sales.

Cramer said on "Squawk on the Street" that analysts don't understand why Apple's next generation phone will sell well because they're too old.

"This sells for people who are younger than analysts," he said.

On Thursday, Wells Fargo's Maynard Um downgraded Apple to "market perform" from "out perform." The analyst said the positives of the iPhone 7 were largely known and expected, and they "expect shares to be range bound."

Apple officially introduced the iPhone 7 Wednesday with an upgraded camera, water-resistant design, the removal of the headphone jack and more.

Expectations were low prior to the event in part due to few changes to the phones' physical appearance. But Cramer said millennials might care more about what's inside the phone than analysts think.

"Believe it or not, millennials, this is what they care about: I'm talking about a GPU performance 50 percent enhancement, CPU 40 percent enhancement, two-hour improvement, on the wider one you get two-hour improvement," he said.

Apple was trading lower Thursday morning at $106.79 a share. The stock is up nearly 1 percent year-to-date.