Warren Buffett Is Still Holding His Apple Stock: Should You?

Core Insights - Warren Buffett has maintained his position in Apple, indicating a bullish outlook on the stock's future despite reducing his ownership size [1][2] - Apple generated $396 billion in revenue over the last 12 months, but faced stagnation and declining revenue in the years following the 2021 technology boom [3][4] Financial Performance - Revenue grew 4% year over year last quarter to $124.3 billion, with an operating margin reaching a record 32% [4] - Services revenue increased to over $26 billion last quarter from $23 billion the previous year, contributing to overall growth [4][5] - Dividend per share has risen 110% over the last 10 years, although the current dividend yield is only 0.42% [5] Product Strategy and Market Challenges - Apple is launching a lower-priced iPhone 16E at $600 to stimulate growth in its hardware division [6] - The company is experiencing revenue declines in key markets like China, losing market share to local brands [7] - Antitrust lawsuits pose a risk to Apple's profit pool, particularly concerning its search engine distribution deals and App Store fees [8][9] Investment Considerations - Despite being a strong business with a competitive advantage, Apple’s current price-to-earnings ratio of 37 is above the S&P 500 average, making it less attractive for new investments [10][11] - Existing shareholders may benefit from holding onto their shares to continue receiving dividends, especially if they purchased at lower prices [12]