- Some cynics have been calling for the slow death of Apple since its legendary founder, Steve Jobs, died in 2011.
- But, Warren Buffett recently endorsed the company and is heavily invested in its future.
- Apple's economic moat, or competitive advantage, could be what saves the company and allows its profits to continue to grow.
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Warren Buffett has a simple prediction for the future of Apple (AAPL)
Some cynics have been calling for the slow death of Apple, but Warren Buffett recently endorsed the company and is heavily invested in its future.
Since the death of legendary Apple CEO Steve Jobs, it's become somewhat fashionable to opine about the slow death of Apple. The company angered customers by removing the iPhone's headphone jack, alienated pro users by not including a standard set of ports on its newest laptops, and has struggled to offer a competitive experience with its Siri voice assistant.
But UBS analyst Steven Milunovich said that looking to another legend, Warren Buffett, can provide a bit of insight on the future for Apple.
It can be argued that despite several recent hardware missteps, Apple has maintained and expanded its economic moat. Apple customers tend to spend like high-value customers when they step into an Apple store, even when they wouldn't exhibit those behaviors at other retailers, Milunovich explains. Apple's customers are incredibly loyal and show their love by opening their wallets.
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With its $1,000 iPhone X, Apple is certainly testing the limits of that theory, but even if the new phone hasn't sparked a "supercycle" like some analysts have predicted, demand has been strong since launch. And Apple is using its economic moat to jumpstart the next big revenue driver for the company, which may not come from a new or updated hardware product.
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