Recently, Warren Buffett's Berkshire Hathaway released its financial report for the second quarter of 2024, which revealed an important piece of information: they have significantly reduced their holdings in Apple Inc., with the reduction nearly reaching 50%. This news has caused quite a stir in the market.

In response, the well-known investor Duan Yongping expressed his views on the Snowball community. He said he currently has no plans to reduce his holdings in Apple. He said, "Unless it is forcibly executed (called away), I will not easily sell Apple's stocks. After selling, I don't know what better to buy, and I believe that Apple will bring returns in the future." He pointed out that as a professional investor, Buffett has many more options than he does.

Dan Bin, chairman of Shenzhen's Oriental Harbor Investment, also expressed his long-term confidence in Apple on Weibo. He said that Apple's share in their investment portfolio is about 10%, and even seeing Buffett's reduction, they have no plans to follow suit. Dan Bin believes that in the era of artificial intelligence, Apple is one of the companies most likely to benefit, with great development prospects in the future.

Although Buffett's reduction this time has had a certain impact on the market, it seems that well-known investors like Duan Yongping and Dan Bin still have an optimistic attitude towards Apple's long-term prospects. They believe that Apple's leading position in technology and the market will bring more growth and return opportunities.

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Dan Bin further mentioned that although Berkshire Hathaway started investing in Apple in 2016 and has made a huge contribution to its performance during this period, it is still uncertain whether it will completely withdraw from the investment in Apple's stocks in the future. He emphasized that even if Berkshire has reduced a considerable number of shares, the impact on the market and Apple itself is not huge. The key is to look at the company's own operating conditions and future development prospects.

He added, "Although Buffett has only invested in Apple for 8 years, this does not prevent Apple from achieving great success and becoming the most important part of the S&P 500 index. In the long run, it is very difficult to outperform the S&P 500 because this index includes many companies that have changed the world, and the importance of these companies may be more highlighted in the era of artificial intelligence. We are willing to continue to hold Apple's stocks, although Berkshire's reduction has also reminded the market of certain risks."

According to Berkshire Hathaway's financial report for the second quarter of 2024, the company's revenue and profit performance in this quarter have exceeded market expectations, although net profit has decreased. By the end of the second quarter, Berkshire's cash reserves reached a record high of $276.9 billion. This increase in cash level reflects the company's reduction of Apple's shares since the first quarter and Buffett's partial profit-taking operation mentioned at the annual shareholders' meeting due to the expected rise in U.S. tax rates.

In addition, Buffett has recently reduced his holdings in Bank of America, his "second-largest position," and this action has been carried out for 12 consecutive days. Berkshire has cashed out $779 million by selling Bank of America's stocks in the last three days. Market analysts believe that one of the reasons for Buffett's reduction in Bank of America's stocks is the possible start of the interest rate cut cycle by the Federal Reserve and the possible decline in the profitability of the banking industry.

Apple's second quarter "failure" in the Chinese marketApple Inc. achieved a total operating revenue of $85.78 billion in the third quarter of 2024 (ending June 29, 2024), representing a year-on-year increase of 4.9%, with a net profit of $21.45 billion, growing by 7.9%. This financial report reflects the steady growth of Apple's overall performance, but it also reveals some challenges in certain product lines.

Despite the overall good performance, Apple's flagship product, the iPhone, saw a slight decline in revenue. Compared to the same period last year, iPhone sales dropped slightly from $39.67 billion to $39.3 billion. In addition, the sales of wearable devices, home products, and accessories also decreased from $8.28 billion to $8.1 billion. However, in the services sector, Apple showed strong performance, with revenue increasing from $21.21 billion to $24.21 billion, a growth of over 14%.

Regarding the situation of iPhone sales, Apple CEO Tim Cook pointed out in a conference call that although the revenue from the iPhone has slightly decreased, its installed base has reached a historical high, showing strong market demand. Cook also mentioned that if calculated at constant exchange rates, the performance of the iPhone actually increased, indicating that exchange rate fluctuations have had some impact on performance.

In terms of regional performance, Apple faced challenges in the Greater China region, with revenue declining by 6.5% year-on-year to $14.728 billion. Apple CFO Luca Maestri explained that this decline was mainly due to the strengthening of the US dollar, and if the exchange rate factor was excluded, the actual revenue drop would be less than 3%. This indicates that, despite facing external economic pressures, Apple's fundamentals in the Chinese market are still relatively stable.

It is worth noting that, according to Canalys statistics, in the second quarter of 2024, the overall shipment of smartphones in mainland China grew by 10% year-on-year, reaching 70 million units. In this market, vivo, OPPO, Honor, Huawei, and Xiaomi occupied the top five positions in terms of shipments, while Apple fell out of the top five for the first time. This change reflects the dynamic changes in the competition among smartphone brands in the Chinese market and also indicates the growth pressure that Apple faces in this key market.

Overall, although Apple faces some challenges in product lines and regional markets, the company's overall financial performance remains strong, especially the significant growth in the services business, which demonstrates the effectiveness of its revenue diversification strategy. Apple's senior management remains optimistic about the company's long-term prospects and continues to commit to addressing challenges through innovation and market adaptation.