Veteran analyst Jim Cramer sees something in Apple’s (AAPL) latest launch that is more than a reason for its customers to buy another replacement phone.
After visiting Apple’s Manhattan store, the CNBC host praised the iPhone 18 but reserved his strongest enthusiasm for the foldable Duo. He plans to buy it as a second phone, a distinction that gives his excitement an intriguing business angle.
Apple shares have already gained around 23.6% this year through September 18, raising the stakes for turning product excitement into sales.
For context, Apple unveiled its iPhone 18 Pro lineup and first foldable iPhone on September 9. The Pro models reached stores on September 18; Duo availability follows on October 23.
For Cramer, the bigger opportunity goes beyond better cameras and battery life. His reaction suggests Apple could give loyal customers a fresh reason to spend, even when their existing phones still work perfectly well.
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Cramer sees Apple’s Duo creating a second reason to buy
Cramer’s core Apple argument in the latest episode of MadMoney, is that the Duo can potentially generate sales beyond the usual replacement cycle. His own plan illustrates the opportunity: buy the new iPhone, then add the foldable.
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“I think the 18 is incremental, but the Duo is revolutionary,” he said.
A stronger battery life and cameras can encourage upgrades, but a device customers buy alongside an existing phone could expand spending per user.
Cramer had already bought the iPhone 18 for its battery life. After trying the Duo, he told Apple executives he wanted that device too.
“I intend to buy the Duo as a second phone,” he said. “That’s right, two phones.”
He went on to praise the unfolded screen for reading and watching video, while emphasizing the absence of a visible crease.
“I mean, first, it may be foldable, but there’s no crease. I mean, none.”
That comes as a surprise as multiple hands-on testers reported a clear visible crease on the Duo.
He also described a device he expected to use constantly while working or traveling.
For shareholders, the potential is huge: incremental hardware revenue rather than simply shifting buyers between iPhone models. But Cramer’s willingness to own two phones remains an anecdote, not evidence of widespread demand.
The commercial test is whether enough customers see a distinct everyday purpose for the Duo to justify buying it alongside another device, which launches at a steep price tag of $2,000.
Cramer sees a cybersecurity opportunity inside the AI scare
Cramer’s broader takeaway on the technology space is that AI security fears could create an opportunity for companies that control access to digital systems.
He singled out Okta after speaking with CEO Todd McKinnon, arguing that identity verification could help address threats from autonomous AI agents.
“He calmly explained that his company’s specialty, identity verification, extends to AI agents,” Cramer said.
That expands the investment argument beyond protecting employee logins. As businesses deploy software agents to perform tasks, they also have to determine which agents can access sensitive information and take consequential actions.
Cramer said McKinnon expressed confidence that identifying agents would help track and stop them.
“They do have identities, and once you have the identity, he knows their whereabouts.”
For investors, that suggests another way to participate in AI spending, which involves the security infrastructure needed to support deployment. More capable agents will increase demand for controls over their permissions and activity.
Cramer pointed to Okta’s upcoming Wednesday analyst meeting as a chance to hear more.
“Why don’t they like talk to the cybersecurity guys?” he asked of AI companies raising alarms.
McKinnon’s confidence, as relayed by Cramer, remains a claim.
Investors should look for customer adoption and sales evidence to validate the opportunity.
Apple’s premium leaves little room for an ordinary upgrade cycle
Apple’s steep valuation setup underscores that investors already expect a successful product cycle.
Cramer’s enthusiasm strengthens the demand argument, but the earnings outlook sets a tougher test for further stock gains.
Seeking Alpha’s data show Apple trading at 38.06 times forward non-GAAP earnings, almost 67% above the sector median and 29% above its five-year average.
Meanwhile, consensus EPS growth slows from 18.37% in fiscal 2026 to 8.58% in fiscal 2027. Even using next year’s projected $9.59 EPS, investors are paying 35.06 times earnings.
Related: Palantir CEO offers surprising solution to AI threats that involves Washington, D.C.
That mismatch matters: Apple commands an elevated multiple while expected earnings growth moderates. A popular Duo launch would need to improve profit expectations to strengthen the valuation case.
Consider an illustrative sensitivity. Applying Apple’s historical forward multiple of 29.41 to fiscal 2027 EPS produces roughly $282 per share, about 16% below the price implied by the data.
The core question is whether Duo purchases add spending or replace other premium iPhone sales. Investors should watch product mix, margins and upward EPS revisions.
Carrier incentives might continue to support demand, as Cramer argues. But the stronger stock catalyst would be evidence that Apple can effectively convert that demand into earnings growth exceeding today’s consensus forecasts.
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