Buy the Phone, Wait on the Stock? Does the iPhone 11 Even Matter?

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Apple's (AAPL) - Get Report iPhone 11's are officially selling, but that doesn't necessarily mean investors should buy the stock. 

Shares were flat to higher, Friday, to $221 apiece, near its all-time, with the broader U.S. market also positive. 

While sales of the new versions are looking decent out of the gates, the tech behemoth's hardware innovation curve has flattened, and now its diving head first into services for users. Analysts on Wall Street are bullish on Apple, which currently only trades at a 17.33 forward one-year earnings multiple.

TheStreet's tech editor Nelson Wang mentioned that Apple is clearly leveraging its large installed base for its services business and that the services outlook looks to be in line with expectations. 

But there may be more to the story than those optimistic points. 

For Hilary Kramer, founder of Kramer Capital Research, the services business isn't necessarily a bad one. "It's going to take a long time for Apple's software business, for their services, to really make it," Kramer said. "In the mean time, they're a hardware play. We know what happens to tech companies that are hardware companies -- ultimately they go full cycle."

Currently, Apple gets roughly half of its revenue from hardware sales, and more than half in some quarters. 

Apple is a key holding in Jim Cramer's Action Alerts Plus portfolio.

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