Before and after the iPhone X was released, analysts were obsessed with how many units Apple would be selling of its radically redesigned handset. Initially, they hyped the handset’s launch and expected Apple to sell 100 million units in a single quarter. Later, they claimed that it had not sold as per expectations with its sales slowing down greatly after the initial launch quarter. Billionaire investor Warren Buffet, however, thinks that analysts are missing the point by obsessing with the short-term sales of the iPhone X.
He also revealed that he brought 75 million Apple shares during the first quarter of 2018. This takes his total tally of Apple shares to 165.3 million making him the third largest shareholder of the company, with his stake totaling around $42.5 billion.
“The idea that you’re going to spend loads of time trying to guess how many iPhone X … are going to be sold in a three-month period totally misses the point,” the Berkshire Hathaway chairman and CEO said in a “Squawk Box” interview that aired Friday. “It’s like worrying about the number of BlackBerrys 10 years ago.”
By focusing on the sales of the iPhone X, analysts are missing the point that the iPhone X (and other iPhones) continue to remain an incredible money making machine for Apple. This is something that no other smartphone or OEM has been able to replicate.
Despite the negative outlook on the iPhone X sales, Apple managed to beat their expectations when it announced its Q1 2018 earnings. In fact, the iPhone X was the most sold smartphone during the first three months of the year in spite of a slowdown in the smartphone market. This shows Apple’s hold over the smartphone market and how it dominates it with its products.
The smartphone market is slowing down and iPhone sales are bound to decline at one point, but what’s important is that Apple still continues to rake in hefty profits from them.