Apple is Berkshire Hathaway’s largest holding, accounting for nearly 40% of its stock portfolio, because Warren Buffett understands Apple’s strong long-term value.
Stefon Walters for The Motley Fool:
Despite a lagging stock price, Apple’s long-term value remains strong.
An encouraging sign is Apple’s commitment to expanding its services and building an ecosystem that allows it to take advantage of the roughly 2 billion active iPhones worldwide… Between Apple Pay, Apple Card, Apple Pay Later, Apple Fitness+, and the many evolving health features on the Apple Watch, Apple has begun integrating itself more deeply into its users’ lives. This smart long-term move will help keep customers in the Apple ecosystem for the long haul.
Apple became the tech giant we know today because of its innovative hardware products, but the next phase of the company’s growth will rely on how it leverages this hardware to cement itself in different service industries. When you begin judging Apple that way, its long-term value becomes much more promising.
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MacDailyNews Take: Apple Services have a gross margin of 74% (vs. 36% for products; still a strong number). With Apple’s installed base of active devices currently in excess of 2.2 billion and counting, barring a black swan the size of Godzilla, Apple’s long-term value is virtually unassailable, as Buffet clearly understands.
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I never ever wish to be wealthy like WBuffet. All I wish is AAPL reaches to $230/share. Let’s pray to god for that, Amen.
apple is an innovation company, being at the forefront of evolving technology in our increasingly technology-oriented culture.
if it slips, the whole company starts to sink.
it’s not as simple as “services.”
it need to continue to live on the cutting edge, and to provide products and experiences better than its competitors.
Services are much like an annuity. Like insurance too, the co sets up the basic structure and, if attractive/fair, they are GREAT cash-flowers. With that said, they are NOT innovative like a device/product (object)…which have been AAPL’s hallmark since inception.
Services can never/should never be a replacement/stand-in for product innovation…or AAPL steps down a rung.
This is wishful thinking. Apple’s fate at this point, decided by its leadership, is to be a more reliable, cohesive and consumer-oriented Microsoft (while lagging in AI).