Wall Street has vastly underestimated the distribution deal that opens up the world's largest wireless market to Apple products at a considerable markup—$874 for each iPhone 5S.
"I do believe a lot of analysts have gotten lukewarm about the China deal," Cramer said on "Squawk on the Street." "This is coming as a kind of a wake-up call to those who have been saying, 'Listen it's not that big, it's not that additive.' It's clearly the biggest thing that's happened to Apple in a very long time."
The deal gives Apple access to China Mobile's 760 million mobile subscribers, and puts Apple back on top in its fight against Samsung, Cramer said.
"This is the take-back from Samsung," Cramer said. "That's been a continual theme from people I know, which is this—Apple is on the offensive, no longer letting Samsung have the high ground."
(Read more: Cramer: Marissa Mayer channels Steve Jobs' flair)
Cramer called Apple stock inexpensive, and he likes how Apple hasn't changed its strategy as it enters the huge Chinese mobile market. The company still plans to charge premium prices for its products, leading Cramer to compare it to luxury auto maker BMW.
(Read more: Google steals innovation crown from Apple: Isaacson)
Apples current prices represent the new breakout level for the stock, Cramer said.
"The analysts are going to come out and they're going to be surprised about the new supports," Cramer said. "They'll have to raise numbers."
Disclosure: Jim Cramer's charitable trust owns shares of Apple and Google.
—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."