Source: eCompany Author: Han Zhongnan On June 25th, the Hong Kong Stock Exchange disclosed that Berkshire Hathaway sold 2.0175 million shares of BYD Company Limited on June 19th, with an average reduction price of HKD 234.57 per share, cashing out approximately HKD 473 million, and the shareholding ratio decreased from 6.18% to 5.99%. It is worth noting that on June 11, Berkshire Hathaway just made a reduction and cashed out HKD 311 million. Reviewing the previous information, since the first reduction of BYD in August 24, 2022, the "stock god" Buffett has reduced his holdings of BYD many times. The shareholding ratio of Berkshire Hathaway has been adjusted from 19.92% to the current 5.99%. Some strategic analysts said that once Berkshire Hathaway's shareholding ratio of BYD drops to 5%, Buffett's reduction speed may accelerate. On June 25th, BYD A shares rose by 1.63%, closing at RMB 254.01 per share, and Hong Kong stocks rose by 0.84%, closing at HKD 239.60 per share. In the Berkshire Hathaway shareholder meeting held in May this year, Buffett mentioned BYD, saying that BYD and Costco were the stocks that he and Munger worked together for these years and Munger most firmly advocated buying. Talking about why he reduced holdings of BYD, Buffett said that Berkshire Hathaway's investment in BYD was similar to the investment in Japan five years ago, which was a large investment that was rare outside of the United States. In the future, he hopes to focus more on the United States. In fact, recently, not only has Buffett been continuously reducing his holdings of BYD, but his favorite "apple" has also been greatly reduced. The latest holding situation submitted by Berkshire Hathaway to the US Securities and Exchange Commission (SEC) shows that in the first quarter of 2024, Buffett reduced his holdings of Apple Inc. by about 116 million shares, reducing his holdings of Apple from 49.3% at the end of 2023 to 40.3%. Analysts pointed out that judging from the portfolio adjustment actions, Buffett is withdrawing from the technology sector and returning to the industries he was familiar with before. The most obvious change is that Buffett has re-established a large position in Chubb Ltd. which he previously owned. Buffett also said in a recent letter to shareholders, "Property and casualty insurance provides the core protection for Berkshire's health and growth." "Only take a swing when conditions are right," Buffett believes that unless he can find investment standards with low risk and lucrative returns, he will not spend this money.
Author: Yan Cui

On November 25, at the Second China International Supply Chain Promotion Expo, Apple CEO Tim Cook made a recent appearance. This is Cook's third visit to china in 2024, the previous two being in March and October of this year.

It is worth noting that Tim Cook has come to China three times this year, each time emphasizing the importance of Apple's Chinese suppliers to Apple's development. This seems to debunk the previously rumored 'Apple will withdraw from China' and further enhance the confidence of Chinese suppliers in both Apple and their own development.

Reiterate the importance of the Chinese supply chain

Specifically, today (November 25th), when asked about how to evaluate Apple's partners in China, Cook said, 'I value them very much. Without our partners in China, Apple would not have achieved what it has today.'

In addition, at the exhibition site of this expo, Apple's exhibition sign also reads, 'Over 80% of Apple's top 200 suppliers produce in China.'

It is understood that Apple publishes a list of suppliers on its official website every year. In April this year, Apple also disclosed the supplier list for the 2023 fiscal year (October 1, 2022, to September 30, 2023) on its official website. The companies in this list account for 98% of Apple's direct expenditures on materials, manufacturing, and assembly of global products in the 2023 fiscal year.

According to the list, the Chinese companies newly included in the Apple supply chain for the 2023 fiscal year include Baoji Titanium Industry, Jiuquan Iron and Steel, Zhongshi Weiyekj Technology, Kaisun Technology (just removed in 2022), Sanan Optoelectronics, Boshuo Technology, Zhejiang Tony Electronic, Zhenghe Group, as well as Taiwan's Nandian and Jinjian Printing Group; the removed Chinese companies include Jiangsu Gian Technology, Shenzhen Deren Electronic, and the Hong Kong-listed Winox, etc.

During Cook's visit to China this time, he also met and exchanged views with representatives of Apple's three major suppliers in Shanghai - Wang Chuanfu, Chairman of BYD, Zhou Qunfei, Chairman of Lens Technology, and Chen Xiaoshuo, General Manager of Shenzhen Everwin Precision Technology.

"For Apple's supply chain, there is no place more important than China. Over the past 30 years, we have been continuously expanding our supply chain in China, and constantly increasing investment." Cook said.

Visiting Chinese supply chain companies

Turning back to October this year, at that time was about a month after the release of Apple's new iPhone 16 series in 2024. Cook stated that China's rapid development has helped Apple achieve rapid and sustainable growth. Apple will continue to focus on long-term development in China, continue to increase investment in the supply chain, research and development, and Apple is willing to continue to play a bridging role in promoting communication and exchanges between China and the United States in the economic and trade fields.

During this trip to China, Apple's Chief Operating Officer Jeff Williams, who accompanied Cook, also visited Lens Technology, a key supplier of Apple in China, located in Changsha, where they toured the assembly line for iPhone back glass and the production base for iPhone back glass.

The day before, Jeff Williams also visited Luxshare Precision's iPhone final assembly plant in Kunshan, Jiangsu, and Bozhong Precision's advanced equipment exhibition center in Suzhou. Public information shows that Bozhong Precision has been Apple's automation equipment supplier since 2010 and participated in MacBook assembly.

"Without our supplier partners, we wouldn't have our products." Jeff Williams said.

According to incomplete statistics, Cook has visited China more than 20 times since 1996. This year, Cook has visited China for the third time, emphasizing the importance of China's supply chain three times, further demonstrating Apple's attention to the Chinese market and supply chain.

Will Apple and Huawei confront each other positively again tomorrow?

From a revenue perspective, in the third quarter of 2024, Apple's revenue of $94.93 billion, Greater China region revenue was $15.033 billion, a 0.3% decrease from the same period last year's $15.084 billion. However, in that quarter, Apple achieved year-on-year growth in sales in the Americas, Europe, Japan, and other Asia Pacific regions.

Market research firm Canalys data shows that in the third quarter, Apple's iPhone 16 series performed well in emerging markets, with a record-breaking shipment of 54.5 million units, ranking second globally. Since Apple introduced Apple Intelligence, consumers have actively upgraded from older iPhone 12 and iPhone 13 models to the new models to experience this new technology.

IDC data shows that in the third quarter of 2024, the shipment volume of China's smartphone market was approximately 68.78 million units, a year-on-year growth of 3.2%. Apple's market share was 15.6%, ranking second. However, iPhone shipments in that quarter were 10.73 million units, a 0.3% decrease compared to the same period.

Interestingly, in recent years, as two of the world's leading consumer electronics brands, Apple and Huawei often engage in positive confrontation. A typical case is that the two companies frequently hold press conferences or major information releases at the same time, such as the annual flagship product launch in autumn, with only a few hours apart between the two companies' events.

On the Huawei side, tomorrow (November 26), they will launch their annual flagship new product Mate 70 series, and their native HarmonyOS will also be officially launched for commercial use.

Editor/Jeffy