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Investment specialist Jim Cramer believes that a low-end iPhone will help Apple (NASDAQ:AAPL) in China and other emerging markets around the world, even if it doesn’t turn out to be a killer product that reignites the company’s stock price.
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Several reports have suggested that Apple was developing a lower-end iPhone to go after wider share of the mobile phone market. The device, made of less expensive materials than the company’s current product lineup, may launch as early as later this year. Cramer told TheStreet.com that he was on-board with the idea of a $100 iPhone if it meant bringing more people into the Apple ecosystem.
However, as far as the company’s stock was concerned, its continued instability was due to the fact that it was over-owned by investors who were still expecting it to grow by 30 percent to 40 percent a year. That’s simply not going to happen, Cramer said, which is why the stock continues to fall.
Earlier this month, Cramer had pointed out on CNBC that Apple was going down because the vast majority of investors who owned the stock had seen big capital gains in the past. Apple’s shares grew 260 percent over the three years through the third quarter of this year, but lost almost 25 percent in the fourth. The stock was in the red on Wednesday.
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