Tim Cook was on Apple’s highest position during the past couple of years. During this period, the company went to being very successful, to being mediocre during 2018 and at the beginning of 2019. This tech giant seems to no longer thinks that it’s a tech company and neither do Warren Buffet. Warren Buffet’s investment in Apple shows that Apple is a consumer products company, rather than a full-fledged tech company.
Apple’s Identity Crisis
The interesting is that Tim Cook thinks exactly the same. He says that Buffet understands the company he’s investing in very well. Since Buffet doesn’t see Apple as a tech company anymore, Cook stated that it’s true. He believes that technology should be in the background and brought up to the front. He also stated that technology should help people do what they couldn’t before.
To this, he added that they are in the tech industry but that the company works along the fine line between technology, liberal arts, and the humanities. He finally added that they’re indeed a consumer products company since they make products for people.
Apple’s Revenue in the First Half of 2019
As we’re approaching the middle of 2019, we can look at some of the statistics of the March quarter. The iPhone revenue fell 17% from 2018 but Apple says that iPhone sales aren’t that important. The company highlighted some of its service revenues from Apple Music and iCloud subscriptions. Their Apple Watch and AirPods grew 16% in the first quarter of 2019 compared to 2018.
Clearly, we can see that Apple makes a lot of money from their other products and services.
We can really comprehend what Buffet is trying to tell. Although he has invested in technology sparingly, Buffet is trying to ramp up Berkshire’s stake in Apple. For Apple, having Berkshire at their side is a sign of recognition and belief. This should push the company further and increase revenue in a longer period of time. Source: Cnbc