Jim Cramer says Apple stock could go even lower but sees plenty of reasons it shouldn't stay down

Published Tue, Apr 23 20241:46 PM EDT

Apple stock has had a lackluster 2024 so far — dropping over 13% since the start of the year. Even Jim Cramer said Tuesday that the Club's "own it, don't trade it" name is "hard to defend" nowadays. However, he argued that the market is getting Apple all wrong. Investor concerns about weakening iPhone sales in China are valid, but "people can't look through the valley of the shadow of death" when it comes to the stock. The tech giant has time and time again proved the naysayers and bears wrong. Apple received another bout of negative press on Tuesday. iPhone sales in China dropped 19.1% in the first quarter, new Counterpoint Research data indicated. Apple's declines came as Chinese electronics giant Huawei reentered the smartphone market with a premium device to compete with the iPhone. The Shenzhen-based company's smartphone sales in China increased 69.7% during Q1. The report wasn't "revelatory," Jim said. Everybody has known about the softening demand for Apple's flagship device for some time. "Why do [people] act like it's news that Apple is doing poorly in China? No kidding." Jim questioned why Wall Street is so fixated on China when Apple's forays into growth markets like India are far more important to the future of the business. Apple's expanding operations in emerging economies "will overtake China," he said. Apple opened its first retail stores in India last year and expanded iPhone production there as well. The Club has praised these strategic efforts because they help Apple diversify its supply chains and revenue streams as geopolitical relations between the U.S. and China remain fraught with uncertainty. Jim cited another tailwind for Apple: generative artificial intelligence integrated into the next iPhone. Club Director of Portfolio Analysis Jeff Marks added that AI is "obviously a reason many people could look to upgrade their phones and could restart the iPhone cycle here." Investors will be closely watching Apple's Worldwide Developer Conference (WWDC) in June when AI-related updates are expected. In the meantime, Apple said Tuesday it will unveil new products at a May 7 online event . Analysts have speculated it'll be about new iPads. No new models were released in 2023. AAPL YTD mountain Apple YTD What's next for Apple stock? Jim reiterated his March 5 forecast that shares could go as low as $160 apiece, which hasn't happened yet. At the time, the stock was above $170. On Monday, it closed just shy of $166. Jim also envisioned a world in which Apple could fall considerably more, down to around $135 per share, if investors were no longer willing to assign a valuation premium to the stock. But, he said, "I don't think the institutions will let it go down that far." (Jim Cramer's Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

An Apple Store in Hamburg, Germany.

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