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Jim Cramer says he 'should've had even more faith' in Apple's quarterly report

Key Points
  • "I was worried Apple wouldn't be able to give us enough of an upside surprise to propel the stock higher because it had already run so much," CNBC's Jim Cramer said.
  • "Well, maybe I should've had even more faith in a company that I always do," the "Mad Money" hos said."It reported a monster top and bottom line beat, fueled by phenomenal iPhone and AirPod sales, along with continued growth from their service revenue stream," he said.
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Jim Cramer says he 'should've had even more faith' in Apple's quarterly report

Apple could give the market a boost after the stock popped on a "stunning" quarterly report, CNBC's Jim Cramer said Tuesday.

"I was worried that Apple wouldn't be able to give us enough of an upside surprise to propel the stock higher because it had already run so much," the "Mad Money" host said after reviewing the tech titan's results of the holiday quarter.

The stock had gained about 30% since it last reported in late October.

"Well, maybe I should've had even more faith in a company that I always do," he said. "It reported a monster top and bottom line beat, fueled by phenomenal iPhone and AirPod sales, along with continued growth from their service revenue stream."

Apple reported revenue of $91.8 billion and earnings per share of $4.99, topping analyst estimates of $88.50 billion and $4.55, respectively. Wall Street players have been keeping a closer eye on the company's wearable devices category, which includes the AirPods and Apple Watch. In that category, which is known as "other products," revenue was $10 billion versus a $9.52 billion estimate.

Apple has had trouble keeping up with consumer demands for its Apple Watch and AirPods. CEO Tim Cook told Cramer in a call it's not clear when the company could keep up with demand for the $249 AirPods Pro, which was launched in the quarter. He did say Apple would not raise prices on the wireless earphones because they want to sell them at a "super aggressive price" point.

Apple CEO Tim Cook discusses the AirPods at a media event in San Francisco on Sept. 7, 2016.
Beck Diefenbach | Reuters

"This is a difficult question because there are several constraints in there, both at the parts level and at the production level, and we're looking to kind of break those," Cook said. "When we initially projected the AirPods Pro, we projected a lower mix than we're seeing and so now we're having to course correct and it's going to take a little time."

Cook added that it was a "terrific quarter for services." He noted that services revenue grew 17% to $12.7 billion, though it missed the $13.07 billion estimated by Wall Street.

Apple also has plans to expand its Goldman Sachs-backed Apple Card to other parts of the globe, Cook said. One opportunity would include China, where credit card companies have found it challenging to do business in that large consumer market.

The U.S.-China "phase one" trade deal signed earlier this month includes language that would allow financial services firms to gain access.

"We want to bring the Apple Card to other geographies," Cook said. "It's not going to be fast to do that because you have to go country by country because of the banks are different in different countries, but you can bet that we're working on bringing it to more places."

Apple shares rose nearly 3% in Tuesday's session and surged as much as 3% in after-hour trading on the company's quarterly report. The stock closed at $317.69.

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Disclosure: Cramer's charitable trust owns shares of Apple.

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