NEW YORK (TheStreet) -- Apple (AAPL) needs to come up with revenue streams beyond iPhones during 2016, as investors believe that any company involved with cell phones will see a downturn, TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.
Shareholders don't own Apple stock for an "upside surprise," but rather because they believe it's an inexpensive stock that will be able to come up with a better revenue stream, Cramer contended.
He noted that Apple can "prove it's more than just cell phones" by either buying or producing a second revenue stream.
A possible acquisition for Apple CEO Tim Cook should be Harman (HAR), Cramer argued. The manufacturer of professional audio, video, lighting and control systems is "deeply embedded" in the BMW, Lexus (TM) and Mercedes (DDAIF) families.
Apple should acquire Harman in time to insert its technology into cars worth $100,000, Cramer explained. The company needs to own cars' Internet of Things to pair with its mobile phones.
"Look, it isn't too much to ask for Apple to stop its endless buyback and increase its exposure to the other mobile force - autos. It must be the brains of your car...all cars. Right now, that's Harman. Why not just buy them for $9 billion? Shareholders won't even notice the lack of cash, but the analysts would be forced to revise their numbers to include recurring revenue streams from different auto companies as they come on stream," Cramer stated.
Cramer added that another area of great growth could come from partnering with Nike (NKE) to create highly competitive wearables.
"And can we now see that partnership between Tim Cook and Nike produce the ultimate wearable? Can these make up for a shortfall in cell phones? Wrong question. They create additional recurring revenue streams that are currently not in the numbers," Cramer noted.