Jim Cramer: Now is the Time to Buy Apple for a Song!

Apple (NASDAQ:AAPL) shares plunged on Tuesday in late trading after the tech giant delivered a big earnings miss, prompting “Mad Money” host Jim Cramer to note that anyone who has been waiting to buy the stock at a discount is finally getting that chance.

“Apple is the kind of special situation that can go down now, in part because of Europe like anything else with international sales, but I still think should be owned,” Cramer said. “You have to take some short-term pain to get the longer-term gain of the new iPhone and new iPads and the iTV.”

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Apple shares fell over 5 percent on Tuesday after the company reported its second quarterly results miss in less than a year. Sales volume certainly didn’t disappoint — Apple sold 17 million iPads in the April to June quarter, beating expectations, and 26 million iPhones, at the low end of expectations. But Apple’s average selling prices for the gadgets declined to levels last seen in 2010 for the iPhone and the lowest levels ever in the case of the iPad.

Of course, some of the decline could be the result of consumers holding off purchases until new products are released. An iPhone 5 is widely thought to be set for an October release.

If Apple doesn’t release the new iPhone until October, the current July through September quarter might experience a similar slump. Apple, notorious for its conservative forecasts, estimated earnings of $7.65 per share on revenue of $34 billion for the current quarter, well below the average forecast of $10.23 per share on revenue of $38.03 million.

While Apple tends to be cautious on predictions, in the most recent quarter, Apple’s forecast was more in line with actual results than were analyst estimates, which is part of the reason investors are pulling back so hard. Apple still experienced over 20 percent growth in revenue and net income during the March to June quarter, which for most companies would be cause for celebration.

But while Apple may not be able to maintain the staggering rate of growth that has characterized the years since it rejuvenated its brand with the first iPod, the company still produces some of the hottest tech products in any market, and projected growth of 9 percent is still better than most companies could hope for, given the economic slowdown in Europe and heightened competition in the tablet and smartphone market from companies like Google (NASDAQ:GOOG) and Samsung.

In the near-term, Cramer thinks Apple stock could see further declines. However, he believes that it could produce gains in the long run, making now the perfect time to buy.

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