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Warren Buffett says the $1,000 iPhone is 'enormously underpriced' despite famously not owning a smartphone

Aug 31, 2018, 15:53 IST

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

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  • 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.

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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.

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