Renowned investor Warren Buffett made headlines by reducing his firm’s Apple holdings by 13% in the first quarter of 2023, a move that coincided with analysts expressing worries over declining iPhone demand. Despite only entering the Apple stock market in 2016, Buffett’s Berkshire Hathaway quickly became a major shareholder, advocating for the value of companies repurchasing their own shares—a principle he imparted to both Steve Jobs and Tim Cook.
Berkshire Hathaway’s Q1 earnings report, as reported by CNBC, confirmed the reduction in its Apple stake, although the tech giant still remains its largest holding, valued at approximately $135.4 billion. In the first quarter of 2024, analysts continued to downgrade Apple, citing dwindling iPhone demand in China as a significant concern.
JP Morgan revised its target price downwards, anticipating AI features to uplift Apple, but not until the release of the iPhone 15 in 2025. Similarly, Morgan Stanley, while maintaining optimism about Apple’s prospects, also adjusted its stock price downwards. However, Apple’s earnings report for May 2, 2024, revealed that iPhone sales in China were not as dire as anticipated, leading to a surge in its stock price post-earnings.
Despite short-term fluctuations, Buffett’s trimming of Apple shares might signal Berkshire Hathaway’s broader shift away from technology firms. This move follows a trend, as Q4 2023 marked the second consecutive quarter where Berkshire Hathaway divested Apple shares, with a notable sell-off of 10 million shares, estimated to be around 11% of its stake at the time. While Buffett had previously expressed regret over selling Apple shares in 2021, his recent actions suggest a deliberate strategy amid changing market dynamics.
