Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, has recently sold a substantial amount of Apple shares. The reason behind this stock divestment remains unclear.

Warren Buffett's Current Sell-off of Apple Shares Explained

Berkshire Hathaway, the multinational conglomerate helmed by Warren Buffett, has been making headlines lately due to its shifting relationship with tech giant Apple.

As of the latest update, Berkshire's holdings in Apple stand at 280 million shares. However, the conglomerate sold another 20 million shares in Q2 2025, marking a significant step in Berkshire's gradual divestment from the company. This move began in Q4 2023.

The decision to sell Apple shares may be influenced by the challenges facing the tech giant. Apple's sales expansion has been sluggish in recent years, and the company has faced significant pressures connected to tariffs due to its reliance on Chinese factories for production.

Moreover, the launch of Siri AI technology has been delayed until at least 2026, which could potentially impact Apple's future growth prospects. Chinese customers have been showing increasing preference for domestic brands, which could further strain Apple's sales in the region.

Despite these challenges, Apple's Q3 sales growth was its strongest since the end of 2021. Total sales for the quarter increased by 10% compared to the prior-year period, and iPhone revenue increased by 13% year over year. These figures exceeded market expectations, marking a positive turn for the tech giant.

It's worth noting that Apple once accounted for over half of Berkshire's total public stock portfolio. However, the conglomerate's portfolio managers made the decision to sell Apple shares before knowing about the substantial sales growth acceleration in Q3.

Apple's TTM revenue growth over the last three years is 4%, while Microsoft's is 39%. This suggests that Microsoft may be outperforming Apple in terms of revenue growth.

On a positive note, Apple has committed to investing $600 billion to build out its U.S. manufacturing base. This could potentially boost its operations in the country and reduce its reliance on Chinese factories.

Compared to other "Magnificent Seven" tech players, Apple faces higher risks if relations between the U.S. and China continue to worsen. However, the company's strong performance in Q3 indicates that it is navigating these challenges effectively.

Apple's Apple Intelligence platform hasn't been a significant performance driver, but the company continues to innovate and explore new opportunities. The delay in the launch of Siri AI technology is a setback, but it doesn't necessarily spell doom for Apple's future.

In conclusion, Berkshire Hathaway's decision to sell Apple shares may be a strategic move to diversify its portfolio and mitigate risks associated with Apple's reliance on China and its challenges in AI development. Despite these challenges, Apple's strong Q3 performance suggests that it is well-positioned to weather the storm and continue its growth trajectory.