Jim Cramer: I’m Ignoring the iPad Upgrade

On Tuesday, Apple (NASDAQ:AAPL) announced the launch of a new iPad with twice the memory of its current largest model. The new model of the fourth-generation iPad with 128 GB storage will be available starting February 5 at $799 for a Wi-Fi version and $929 for a cellular one. While the high price of the device is expected to help improve Apple’s gross margins — one of the sources of concern for the company’s investors after the last earnings release — the launch has not impressed everyone.

Investment specialist Jim Cramer said on CNBC that the new iPad was neither a very coveted product nor likely to provide Apple’s stock the momentum it needed right now. “I’m sure this is a good product, but I know I don’t need one,” he said. “I think it’s great they have a new product. GE (NYSE:GE) probably has some new products, too.”

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According to Cramer, Apple needed something more solid to spark its sagging share price. Even though the stock was up on the news on Tuesday, it has fallen more than 8 percent since earnings were announced last week. “This is an incremental positive in a stock that doesn’t need an incremental positive,” Cramer said. “The stock needs more. I’m looking for new dividends, new buybacks, and new breakout products — this is not it.”

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