Earlier this year, Warren Buffett and Berkshire Hathaway have double downed on their Apple stock position, revealing that they had purchased an additional $3 billion worth of Apple stock. That means they now own about 5.8% of all AAPL shares in circulation, valued at about $137 billion. Since investing in Apple in 2016, he has spoken about the brand in very high regard. He views Apple as a lifestyle brand more than an actual technology company.
Our very own Chance Miller wrote about a recent interview between CNBC and Warren Buffet. Warren Buffet spoke about his investments in Apple as well as why he believes so strongly in the company. He continued to mention that Apple was a “wonderful business” that benefits both its customers as well as its investors.
The power of the Apple brand
Warren Buffet spoke extremely highly about Apple CEO Tim Cook, saying that Cook “has managed that company in an extraordinary way.” He continues to increase revenue numbers and increase product adoption, but most importantly, he is able to create repeat customers and have those customers buy even more Apple products in different categories. It all starts with the iPhone, and once the customer gets their foot in the Apple door, they continue to build their Appel product portfolio.
One comment that really stuck out to me during Warren Buffett’s interview that Chance highlighted in his article was that Apple’s superpower was brand loyalty. He went on to say that people wouldn’t give up their iPhones for even $10,000. That comment really got me thinking, how much would I need to get in order to give up my iPhone for good? Was it $10,000? Was it $100,000? Was it even more?
Personally, I am fully aware that I cover Apple products as a job, so I indirectly generate revenue by using my iPhone as well as other Apple products. As a result, my number might be different from someone who just uses their iPhone as any other smartphone. But I was curious to know what other iPhone users would do. If presented with a chance to take financial compensation to not only give up your iPhone but also never be able to buy any future iPhones, how much would you need?
It’s a tough question to answer. You would be giving up some Apple iPhone features like Airdrop, iMessage, the best mobile video, and more. But most importantly, you would give up the centerpiece of what people call the “Apple Walled Garden – that ecosystem Apple has created where their devices magically talk to each other is Apple’s secret weapon.
So what would you do? Would you give up the right to own an iPhone for a certain amount of money? If the $1,000,000 isn’t enough, then how much would you need? Let’s discuss this in the comments below!
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