Warren Buffett Suddenly Sells Apple Shares, A Rare Move

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Rare! 'Stock God' Warren Buffett suddenly sells Apple shares.

After the market closed on Wednesday local time, the latest 13F filing for the fourth quarter of 2023 from Buffett's Berkshire Hathaway revealed that the company reduced its holdings of Apple shares by 10 million in the last quarter of last year. Based on the average stock price during that period, the divestment was worth approximately $1.822 billion (about 13.1 billion yuan). However, Apple remains Berkshire Hathaway's largest holding, accounting for 50.19% of the disclosed assets.

At the same time, Apple's flagship product has encountered setbacks. The Apple Vision Pro, with a starting price as high as $3,499 (about 25,000 yuan), has been on sale in the U.S. for less than two weeks. Google search trends show a surge in searches for 'return Apple Vision Pro.' Additionally, according to Phoenix Network Technology, as of February 14, Apple Vision Pro has started receiving returns from users.

Furthermore, a personnel change in Apple's design team has also drawn attention. On February 14, Bloomberg reported, citing sources, that Bart Andre, Apple's longest-serving senior industrial designer, is about to leave. This marks the near-complete dissolution of the 'soul team' led by former Apple designer Jony Ive, who was responsible for creating Apple's aesthetic.

Buffett Suddenly Sells After the market closed on Wednesday local time, Berkshire Hathaway's latest 13F filing for Q4 2023 revealed that the company reduced its Apple holdings by 10 million shares during the quarter. Based on the average stock price during that period, the divestment was worth approximately $1.822 billion (about ¥13.1 billion RMB). This brings Berkshire's stake in Apple down to 5.9%.

Apple remains Berkshire Hathaway's largest holding, accounting for 50.19% of its disclosed assets. According to Dow Jones Market Data, these shares were valued at approximately $167 billion as of Wednesday.

Notably, Apple's stock performance has been disappointing recently, significantly lagging behind other major U.S. tech companies and losing its crown as America's most valuable company. As of the latest closing, Apple's stock has declined over 4% year-to-date, while the Nasdaq Composite Index has surged more than 5% during the same period. In comparison, Nvidia has skyrocketed 49%, Microsoft has gained 9.1%, and Google has risen over 4%.

Meanwhile, Apple faces multiple challenges, including regulatory scrutiny of its App Store policies, declining sales in the Chinese market, and investor concerns about its growth prospects. Several analysts have already downgraded the stock.

The latest 13F filing also shows that Berkshire reduced its stake in HP during Q4 while increasing holdings in Chevron and Occidental Petroleum. Berkshire's top holdings include Apple, Bank of America, American Express, Coca-Cola, and Chevron. As of the end of Q4, the fund's total portfolio value reached $347 billion, an increase of $34 billion from the previous quarter. Apple's "Major Flop"

Apple Vision Pro has seen a surge in searches for "return Apple Vision Pro" on Google Trends within less than two weeks of its US launch.

On February 14, Phoenix Network Technology reported that Apple's first headset, Vision Pro, has already started receiving returns from users less than two weeks after its release.

Some users listed their reasons for returning the product on social platform X (formerly Twitter), including:

1. It's heavy to wear. Although Vision Pro appears lightweight, it actually weighs 600–650 grams, close to the weight of a 12.9-inch iPad Pro.

2. It's not eye-friendly.

3. It gives me headaches. Every time I wear it, I get a headache for hours. 4. Insufficient apps - The device lacks many essential applications for work such as Chrome and Grammarly.

4. Bulky design - It's too large to be portable and can't even fit into a backpack.

5. Battery anxiety - With only 3166mAh capacity, Vision Pro's battery lasts at most two and a half hours before dying.

YouTube tech reviewer Farzad Mesbahi stated, "I can't use it as a tech/productivity device."

He mentioned that even when sitting comfortably, wearing a device on the head and face is inconvenient. He wouldn't use the headset for extended periods like smartphones, tablets, or computers.

According to Phoenix Network Technology reports, some users admitted they purchased Vision Pro just to return it after experiencing its features. One user, Matt Schneider, who bought (then returned) Vision Pro, enjoyed using it for browsing Instagram and watching YouTube videos. He said: "If Apple thinks I'll pay $4000 for this, they're crazy." It's worth mentioning that Meta CEO Mark Zuckerberg also experienced the Vision Pro, and the results might have given him a sigh of relief. Since Meta's headset directly competes with Vision Pro, Apple's headset's performance will directly impact Meta.

On February 13 local time, Zuckerberg posted a video on Instagram reviewing the Vision Pro. He filmed the video in his living room using Quest 3's (Meta's VR device) passthrough mode.

After using Vision Pro, Zuckerberg stated, "I not only think Quest is more cost-effective, but I also think it's the better product, period."

He believes that Quest 3 is 120 grams lighter, making it more comfortable for extended wear. Without a wired battery pack, it offers greater freedom of movement and a wider field of view compared to Vision Pro.

As of the time of writing, Apple has not responded to these criticisms or provided specific details about current return rates. On February 2 local time, Apple Vision Pro officially went on sale in the United States. According to Apple's official website, the 256GB version is priced at $3,499 (approximately RMB 25,000); the 512GB version is priced at $3,699 (approximately RMB 26,700), and the 1TB version is priced at $3,899 (approximately RMB 28,000).

Apple's 'Soul Team' Behind Its Aesthetic Has Disbanded

On February 14, Bloomberg reported, citing sources familiar with the matter, that Bart Andre, Apple's longest-serving senior industrial designer, is about to leave the company. This marks the near-complete dissolution of the "soul team" that created Apple's iconic aesthetic under the leadership of renowned designer Jony Ive.

Well-known Apple insider Mark Gurman recently wrote that Andre joined Apple in 1992 alongside Ive, predating Steve Jobs' return to the company. As Ive's senior deputy, Andre helped shape the aesthetic of all products Apple released over the past three decades and was among the employees holding the most patents at Apple.

Gurman stated that sources revealed the designer, who has worked at Apple for over 30 years, informed colleagues of his impending retirement. This is undoubtedly another major blow to Apple, following the departure of top designers Colin Burns, Shota Aoyagi, and Peter Russell-Clarke at the end of 2023. According to Gurman, Jony Ive's core design team at Apple consisted of approximately "two dozen" (around 24) designers over the past decade. Following Ive's departure from Apple in 2019, this team began experiencing continuous attrition, with many members joining LoveFrom - the design firm Ive founded, which began collaborating with Apple two years ago.

Previous reports indicated that OpenAI CEO Sam Altman has planned to partner with Ive's LoveFrom to develop consumer hardware products, with ambitions to secure over $1 billion in funding from SoftBank.

Regarding the reasons behind designers like Andrea's departures, insiders explained that Apple COO Jeff Williams' direct oversight of the industrial design team starting in 2023 created dissatisfaction among some employees, who struggled to accept operational executives managing this creative innovation department.

Design team members also noted that cost-cutting measures exacerbated departmental instability. Under Ive's leadership, the team had pursued exploratory projects that didn't necessarily deliver immediate returns, but these initiatives now face strict controls.

Apple CEO Tim Cook has previously mentioned the company's detailed succession planning, with Williams being considered one of the leading external candidates for future leadership roles.