The paper earlier Monday quoted sources as saying the Cupertino, California-based tech company has told suppliers Foxconn and Pegatron to stop preparing additional production lines.
"This is complete nonsense," Cramer said on "Squawk on the Street." His charitable trust owns Apple stock.
Apple shares were more than 2 percent lower midmorning Tuesday after the report. Separately, the company's stock was downgraded by Rosenblatt Securities, which said it has lowered its expectations for iPhone production and shipments.
Apple pulled the broader tech sector lower last week, falling more than 6 percent on Friday, after the company's iPhone shipments for last quarter missed estimates. Apple also offered light guidance and announced major changes to its reporting structure.
Cramer, the host of "Mad Money," said at the time that investors shouldn't give up on the company's stock despite Apple's management botching the way it announced a change to its earnings reporting.
"My advice now is to let this stock settle down. Give the sellers who don't believe [CEO] Tim Cook's explanation a couple more days to get out. Then, if you don't own it, I'd start buying it," he said Friday.
Cramer has long warned investors against selling Apple's stock on news reports about iPhone demand.
Nikkei did not immediately respond to a request for comment on Cramer's remarks.
— CNBC's Elizabeth Gurdus contributed to this report.