- Billionaire investor believes iPhone users wouldn’t sell their device for $10,000
- He praises the work of Tim Cook at the head of Apple and the loyalty of customers to the brand
- However, he is getting rid of 85% of his shares in TSMC, Apple’s Taiwanese subcontractor.
Wouldn’t you drop your iPhone for all the gold in the world? Billionaire Warren Buffett, one of the richest men on the planet, is convinced of this.
He thinks that iPhones are worth “over $10,000” for their owners. In an interview with CNBC, the famous investor praised Apple, its CEO Tim Cook and the loyalty of its customers.
According to him, iPhones are unique products, which create a strong bond between users and the brand. He compared the situation to that of the automobile market, where consumers are ready to switch models easily. He declares :
If you’re an iPhone user and someone offers you $10,000, but the only condition is that they take your iPhone and you can never buy another one again, you wouldn’t take it. If you were told that if you bought another Ford car, you were given $10,000 for not doing it, you would take the $10,000 and buy a Chevrolet instead. It’s an incredibly valuable utility.
Warren Buffett also praised the work of Tim Cook, who was able to give a “new life” to products “imagined by Steve Jobs” after the death of the founder of Apple. “Tim Cook is one of the smartest CEOs out there and he understands business. Tim Cook has run this business in an extraordinary way”he said.
” @tim_cook is one of the classiest CEOs and he understands the business. Tim Cook has managed that company in an extraordinary way,” says Warren Buffett on $AAPL. “It’s a wonderful business so we own a lot of it.” pic.twitter.com/1lVUNIfgnT
— Squawk Box (@SquawkCNBC) April 12, 2023
Warren Buffett drops his TSMC shares
Warren Buffett, Apple fanboy? Think again. He revealed that he owns an iPhone 12 Pro Max himself, which he considers a “treasure” in his pocket. However, when it comes to business, the billionaire is not blinded by his admiration for Apple.
So he announced that he was going sell 85% of its shares in TSMC, the Taiwanese subcontractor that manufactures chips and components for iPhones. The reason ? Geopolitical tensions between China and Taiwan, which threaten the stability of the region. Buffett does not want to take the risk of seeing TSMC be affected by a possible armed conflict between the two countries.
Despite this decision, Warren Buffett remains confident in the future of Applewhich he describes as a business “wonderful” for users and investors. He has no intention of selling his shares in the Apple firm, quite the contrary. “Our stake increases a little each year because they buy back their shares. And Tim doesn’t issue them, he buys them. And we love it”he concluded.
Berkshire Hathaway, Warren Buffett’s company, owns more than 5% of the capital of the firm to the apple, making it the third largest shareholder.
