Cramer Calls Apple Sellers 'Stupid as Plywood,' Sets $90 Starbucks Buy Level

Apple shares fell about 2% after Nikkei Asia reported that the company is cutting component orders for the iPhone 18 Pro and iPhone 18 Pro Max due to weaker demand. October production orders were cut by 15% from original plans, the Japanese business outlet said, citing people familiar with the situation. On CNBC, Cramer said: "If you're selling it here … I've got to tell you that you're stupid as plywood." Investors who do not already own the stock should use Friday's weakness to start a position with a small purchase of 25 shares, he said.

Cramer cast doubt on the report's accuracy, noting that former Apple CEO Tim Cook has previously pushed back on similar claims. He pointed to new products as catalysts, led by the iPhone Duo, Apple's first foldable smartphone. The device becomes available for preorder on Oct. 16, before officially hitting shelves a week later, with a starting price of $1,999. Cramer said Wall Street is vastly underestimating the Duo's potential as a growth driver. "The Duo is the most exciting thing I've ever seen," he said, adding that he got a firsthand look at the device at Apple's flagship store in New York last month. Apple is also expected to unveil a new lineup of smart home products at its "Welcome Home" event on Tuesday, Oct. 13. "Apparently, this time the home iteration is done right," Cramer said.

Broader market conditions were mixed. Cramer said the stock market was "not that good" on Friday. The S&P 500 and Nasdaq posted modest gains, but rising bond yields and flat oil prices kept a lid on stocks. Nvidia was little changed in what Cramer called an "extreme tape," with the AI trade under pressure again after a rough ride in Thursday's session.

On Starbucks, Cramer said he had considered buying more shares Thursday after reports that the coffee giant was considering a deal to buy Chipotle slammed the stock. Starbucks fell again Friday. The Club is restricted from buying Starbucks because Cramer talked about it on CNBC, but he said during the Morning Meeting that a further decline to $90, along with signals that Starbucks will not buy Chipotle, could be a good buy level. He said Thursday and reiterated Friday that buying Chipotle does not seem like the kind of deal Starbucks CEO Brian Niccol would do, even though Chipotle was the company Niccol turned around before taking on the Starbucks overhaul.

Cramer said elevated bond yields, oil prices and concerns about inflation were why the Club bought more shares of three defensive names on Thursday. He described them as not big buys, but as a way to put a little on to balance the portfolio's exposure to AI and the data center buildout. The names were Kimberly-Clark, where he likes the Kenvue deal; FedEx, where he wants to gradually get big; and Bank of New York, where he likes that it does not have credit risk. Cramer said he was leaning toward hitting the pause button on trades for Friday.

Editor's Summary. Cramer said selling Apple after a reported 15% cut in October iPhone 18 Pro component orders was a mistake and suggested a small starter position. He set a $90 buy level for Starbucks if it signals it will not buy Chipotle, and said the CNBC Investing Club bought Kimberly-Clark, FedEx and Bank of New York as defensive balance to AI exposure.