Warren Buffett’s Berkshire Hathaway, Citadel Investment Group, Fisher Asset Management, Adage Capital Management, and Greenlight Capital are betting big on Apple Inc. , which will introduce the iPhone 7 in just a few weeks. Mr. Buffett was bullish on the company during the second, boosting its stake in the company by around 56%. Citadel Investment Group also seems a big fan of the iPhone maker, with the investor increasing its position by about 70% to 2.92 million shares during the last quarter.
Hedge Funds’ Move
According to latest 13F filings, Buffett’s Berkshire Hathaway held 15.23 million Apple shares, worth $1.46 billion, as of June 30. The stock pays a steady and consistent cash dividend, a $2.03 a share in fiscal 2015. So far this year, Apple’s stock has gained 1.64%.
Apple is also a favorite stock of Fisher Asset Management, which holds 11.31 million shares, valued at $1.10 billion. Citadel Investment Group, led by Ken Griffin, disclosed ownership of 2.92 million shares of Apple at the end of the second quarter. The holding is valued at $279.34 million as of June 30.
Adage Capital Management also sees value in Apple, owning around 7.47 million shares, worth $714.13 million. At the end of the second quarter ending June 30, Greenlight Capital was holding 6.85 million shares, valued at $655.31 million.
Apple Focusing On China To Boost Sales
Apple’s stock has been performing well this year. The stock has gained 13.32% during the past six months. However, during the past 12 months, shares have lost nearly 6%.
Cook has been looking to establish his company outside the US as the company’s sales have plummeted this year. The company is worried about its stalled growth in its two top markets, the U.S. and China.
China is important but difficult market for Apple Inc. . The company has been facing problems in China, where its sales plunged 26% in its fiscal second quarter. The company plans to boost its investments in China, according to the reports. During his recent visit to China, Cook had spoken with senior government officials and pledged to expand the firm’s presence across the world’s second-largest economy.
The iPhone maker wants India to replace China. But analysts at Mizuho Securities believe that India isn’t likely to compensate for the company’s slowing sales in China. The analysts said that India cannot replace China in the company’s revenue stream “due to lower wages, strong incumbents at very attractive price points, lack of carrier support and the political environment.”
During his second visit to China this year, Cook revealed that his company will build a research and development center in China. He met with several key Chinese senior government officials, including Vice Premier Zhang Gaoli.
There has been quite the buzz surrounding Apple’s iPhone 7. The latest model of the mobile device will be unveiled by Cook in September. Reports suggest that the iPhone 7 will not have an audio jack, and the iPhone 7 will be waterproof. These are two of the biggest expectations about the smartphone.
Some analysts fear that consumers will skip the iPhone 7 and wait for the iPhone 8. It has been speculated that Apple Inc. will give the iPhone 8 a makeover, and the device may come with virtual and augmented reality technology. Reports also say that the model could be equipped with an OLED screen, long-range wireless charging and even an all-glass body.