Jim Cramer Thinks Apple Will Struggle Unless This Happens

According to CNBC’s “Mad Money” host Jim Cramer, tech giant Apple will continue to struggle unless one of two things happen.

Cramer projects that only a pickup in iPhone sales or growth in the company’s service business could put Apple’s stock back on course. He explained, “As long as iPhones make up more than 60 percent of Apple’s sales,” Apple’s stock will “stay mired at this level.”

“As long as iPhones make up more than 60 percent of Apple’s sales, Wall Street will only care about the razors, not the razorblades,” Cramer said on “Mad Money” this week. It was just one day after his interview with Apple CEO Tim Cook that he made the remarks.

“That’s why I expect Apple’s stock will stay mired at this level, either until the phone biz picks up again or the service biz grows to the point where it can no longer be ignored,” he said.

It was this week that Mayo Clinic’s head of cardiovascular medicine told CNBC that it was using artificial intelligence to predict heart failure using patients’ electrocardiogram readings.

Cramer pointed out that to request an electrocardiogram from your doctor can be “kind of a hassle,” but buying electrocardiogram-equipped Apple Watch isn’t.

“That, right there, within the span of 10 minutes, is why Apple’s such a conundrum. If you want an EKG, the Apple Watch is better than going to the doctor’s office because you’re constantly wearing it so you get a more accurate reading,” Cramer noted.

“Of course, I don’t expect this story will move this stock, not right now. Not even anytime soon,” Cramer added. “Until then, … the stock will trade on every little data point that gives us some insight into the iPhone hardware sales.”

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.