The Cupertino-based company had a busy fall in 2017 with its new iPhone lineup of products. After posting its financial results, Apple shares on Monday increased 2 percent after Warren Buffett pitched in favor of the technology giant.
According to Reuters, the company’s stock price was priced $179.04 and just came up short of reaching $179.26. In other words, the final price came close to the January 18 mark.
What led to this surge in stock price was Buffet’s comments and investments in Apple. The statements were made during an interview.
“In an interview with CNBC on Monday, Buffett said his company, Berkshire Hathaway, had bought more Apple shares than any other stock over the past year. He also praised Apple’s ability to retain customers in its iPhone ecosystem.”
The move by Buffett to invest is substantial. In the news release, it confirmed that Berkshire Hathaway increased its stake in Apple by 23 percent. In addition, this made the company’s largest common stock investment and can be the reason stocks grew over the course of the day.
But the investment is not a coincidence. As stated by Bloomberg, it appears that they have unconfirmed sources and have indeed reported the release of the largest iPhone ever.
— Entrepreneur (@Entrepreneur) February 26, 2018
Apple in the fall of 2017 released several new models of the iPhone. The company had anticipated banking on iPhone X, but the price tag and the lackluster sales of it might have forced Apple to come up with something different.
What is happening in the smartphone market is called saturation. So, trying to spark new sales is a difficult task for companies in the smartphone business. One possible solution is to add innovative features consumers are really desiring, or perhaps manufacture models with bigger screens.
— StockTwits (@StockTwits) February 24, 2018
“The new phones could revive the screen size wars of years past at a time when smartphone makers are straining to come up with new features to lure buyers in a saturated market. Global smartphone sales were down 0.1 percent last year, according to research firm IDC, with Apple and Samsung Electronics Co Ltd expanding shipments only 1.9 percent and 0.2 percent, respectively.”
The tentative size of the largest iPhone could be a screen of 6.5 inches or 16.5 cm. These dimensions would make it larger than Samsung’s Galaxy S9, which is 6.2 inches (15.75cm).
— Hotpage News (@Hotpage_News) February 27, 2018
In light of underperforming sales of the newer models, Apple and other competitors might have to differentiate in features. Smartphones are prevalent now and reproducing strong sales in the number of units will be worth revisiting later this year.