“It’s time to change our perceptions of Apple Inc. (NASDAQ:AAPL),” Jim Cramer said on his “Mad Money” TV show Tuesday.

He mentioned that Apple, which he holds in his charitable trust, is not only the best tech company, but it’s also the best retailer and manufacturer on earth. With its Mac computers and iPhone, iPad and iPod product lines, it’s selling into the music, phone, communications, server, laptop, desktop, television, gaming, social networking and fashion business. “All that combined means the company is doing much better than anyone is expecting,” Cramer said.

Cramer told viewers that when it comes to comparing retailers, the metric to watch is sales per square foot of store space. On the high end of the range is Nordstrom, Inc. (NYSE:JWN) at $434 of sales per square foot. Next is companies like Whole Foods Market, Inc. (NASDAQ:WFMI) at $875 and high-end retailer Tiffany & Co. (NYSE:TIF) at $1900 a square foot.  “All of these numbers make Apple, which generates a staggering $4600 a square foot, the undisputed king of retail,” Cramer said.

With all of this in mind, Cramer said it’s time to up his price target on Apple. He now thinks the company can earn $22 a share in earnings. Using the average S&P 500 multiple of 14.8 times earnings, that would put Apple at $325 a share.

“Don’t be scared off by the triple-digit stock price,” said Cramer. “Think of it as a fabulous $26.80 stock that’s going to $32.50, or do whatever other mental gymnastics are necessary, as long as you buy the greatest retailer on earth.”   Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!