Cramer Says Apple’s Vast Cash Reserves Dull Any Boost From Lower Interest Rates

Television commentator Jim Cramer argued that Apple Inc. would see little direct benefit from the Federal Reserve’s recent interest-rate cut, citing the company’s exceptionally large cash position and limited reliance on external borrowing. His comments were made on December 13, 2025, during a discussion of how lower rates could ripple through major technology names.

Cramer pointed out that Apple holds tens of billions of dollars in cash and marketable securities. Because that money is typically parked in short-term instruments that track prevailing rates, a cut by the Federal Reserve means Apple is likely to earn less interest income. “Apple’s not really impacted by lower rates,” he said, emphasizing that the company’s funding needs are modest compared with peers that depend on the capital markets for growth.

The Federal Reserve reduced its benchmark federal-funds rate earlier in the week, a move intended to support economic activity after several quarters of slowing growth. According to the central bank’s official statement, the decision reflected progress on inflation and a desire to foster maximum employment. The cut lowered yields across short-term Treasury securities, directly affecting the return Apple earns on its sizable cash balances.

Apple ended its most recent fiscal year with cash, cash equivalents and marketable securities exceeding $150 billion. While the company carries some long-term debt, the net position remains strongly positive. Lower rates, therefore, do not reduce interest expense in a meaningful way, but they do compress the yield Apple receives on its liquidity cushion. Cramer contended that investors looking for beneficiaries of cheaper financing should focus on firms with heavier borrowing requirements.

In the same segment, Cramer addressed perceptions that Apple is lagging in the current wave of artificial-intelligence investment. Some market participants have branded the iPhone maker an “AI loser,” arguing that it has unveiled fewer generative-AI initiatives than large cloud infrastructure rivals. Cramer countered that view by highlighting Apple’s installed base of more than 2.3 billion active devices and approximately 1.5 billion users. He suggested that at least one major chatbot operator may eventually pay Apple to become the default conversational platform on those devices, echoing the long-standing arrangement that makes Google the default search engine on Safari.

The discussion arose amid wider scrutiny of technology spending. Major cloud “hyperscalers” have allocated substantial sums to build data centers capable of supporting large-scale AI applications. Cramer argued that critics should not simultaneously fault Apple for lower data-center outlays while chastising competitors for high capital expenditures. He framed Apple’s comparatively measured approach as consistent with the company’s historic preference for tightly integrated hardware-software solutions rather than expansive public cloud services.

Beyond the interest-rate debate, the original investment note that prompted Cramer’s remarks outlined alternative opportunities in the AI space. The report contended that several lesser-known AI companies may offer greater upside potential and lower downside risk than Apple, particularly those positioned to benefit from U.S. onshoring trends and residual tariffs stemming from trade actions initiated in 2018. Although specific tickers were not disclosed in the broadcast, the authors cited the possibility that one undervalued AI provider could see outsized gains over a short horizon.

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Apple’s core business continues to revolve around its hardware lineup—the iPhone, Mac, iPad, Apple Watch, and AirPods—and the services ecosystem that supports those products. Services revenue encompasses the App Store, digital content, AppleCare, cloud storage and licensing agreements. In fiscal 2024, services generated a record share of total company sales, offering a more stable margin profile than the hardware segment, which is sensitive to product-cycle timing.

Even so, the company faces persistent scrutiny over future growth drivers. Slowing smartphone upgrade rates, regulatory pressures in multiple jurisdictions and competition in wearables all weigh on sentiment. Lower interest rates have historically provided a valuation tailwind to large-cap technology stocks by reducing discount rates applied to future cash flows. In Apple’s case, Cramer maintained that any such benefit is muted compared with companies more dependent on external financing or those that expect a significant drop in borrowing costs for expansion.

Market participants will continue to watch how Apple deploys its cash hoard and whether the company unveils new AI-centric features or partnerships in the coming product cycles. For now, Cramer’s view suggests that investors hoping the Fed’s dovish stance will materially re-rate Apple shares may need to look elsewhere for a direct rate-cut play.

Crédito da imagem: brandon-romanchuk/Unsplash