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NEW YORK (TheStreet) -- Apple (AAPL) - Get Apple Inc. (AAPL) Report stock is gaining 1.26% to $94.67in early-afternoon trading on Wednesday after Bernstein analyst Toni Sacconaghi placed a $1 trillion target on its service revenue. 

"I love this piece," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning. "I think it's totally right."

Sacconaghi discusses the opportunity to migrate to a subscription model, contending that users will adopt Apple's Family Sharing plan. The plan grants up to six family members access to each other's iTunes, iBooks, and App Store purchases.

Cramer added that the iPhone maker must cultivate this focus on service revenue to move beyond being solely a handset company. 

Additionally, Apple CEO Tim Cook is currently visiting India, and plans to open a new iOS app design and development accelerator in Bengaluru by early 2017.

India is just now creating the kind of infrastructure that will allow the country to use fancier phones, Cramer mentioned. He explained that India primarily has mom and pop stores, rather than places like Verizon (VZ) where customers can set up a phone contract. 

"I think India will be very big," Cramer said. "I am again a believer in Apple, and I think it should be owned, not traded."

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But the stock is schizophrenic, Cramer added in the above video. Countering the $1 trillion service revenue price tag, which Apple could achieve by leveraging China and India operations to monetize service, is a potential rate hike by the Federal Reserve. 

"If you have more governors come on and say, look we have to tighten because we have a hotter economy then Apple won't matter either," he said. "You'll be fighting the Fed."

(Apple is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Apple's strengths such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: AAPL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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