Warren Buffett says Apple’s iPhone is ‘enormously underpriced’

Warren
Buffett tells former CNN host Piers Morgan about his flip phone
in 2013.
CNN

• Berkshire Hathaway CEO Warren Buffett said he thinks
  the $1,000 iPhone X is “enormously underpriced,” despite
  famously not owning a smartphone.
• He said iPhones provide huge value to hundreds of
  millions of people who “practically live their lives” by
  them.
• Berkshire Hathaway continues to buy shares in
  Apple.

Billionaire Warren Buffett thinks the $1,000 iPhone X is
“enormously underpriced.”

That’s according to an interview the legendary investor gave to CNBC’s Becky Quick on
Thursday, in which he said that Berkshire Hathaway continues
to buy Apple stock.

Speaking as Apple readies the release of a
bunch of new models, he said iPhones provide huge value to
the hundreds of millions of people who “practically live their
lives” by them. Having said that, Buffett doesn’t see Apple
raising the price much over $1,000.

“It’s got competition so you can’t push the price, but in terms
of its utility to people and what they get for a thousand
dollars… you can have a dinner party that would cost that, and
here this is, and what it does for you, it’s incredible,” he
said.

A leaked photo of the new
iPhone, according to 9to5Mac.

9to5Mac

Buffett famously doesn’t use a smartphone, preferring an old flip phone,
but recognises how important it is in other people’s day-to-day
lives.

“I have a plane that costs me a lot, maybe a million dollars a
year or something of the sort. If I used the iPhone — I use an
iPad a lot — if I used the iPhone like all my friends do, I would
rather give up the plane,” he said.

Buffett remains very bullish about Apple, and told CNBC that he
has bought “just a little bit” more Apple stock in recent months.
A regulatory filing earlier in August showed Berkshire owned 246.5 million
Apple shares, or about 5.1% of Apple, as of June 30.