Jim Cramer is not giving up on Apple. Here's why

Core Viewpoint - The investment community remains cautiously optimistic about Apple despite current challenges, with potential for recovery if the company can navigate external pressures, particularly from tariffs and competition in the tech space [1][2][3]. Group 1: Current Challenges - Apple's stock is currently underperforming compared to market averages, largely due to external factors such as tariffs imposed by President Trump on Chinese manufacturing [1]. - The company faces significant cost increases if it shifts manufacturing to the U.S., with estimates suggesting an iPhone could cost as much as $3,500 if produced domestically [1]. - Recent product announcements at the Worldwide Developers Conference were deemed unremarkable, particularly in the area of artificial intelligence, contributing to a lack of enthusiasm among investors [2]. Group 2: Financial Performance and Projections - Despite the current uncertainty, there is confidence in Apple's leadership under CEO Tim Cook, with historical trends indicating that downturns have often presented buying opportunities [3]. - Apple's expected earnings growth rate for the current calendar year is projected at 14%, which outpaces the S&P 500's anticipated growth of 9.4% [4]. - The stock is considered undervalued at around 25 times earnings, suggesting that a significant drop in price could present a strong buying opportunity [5].