Warren Buffett's Berkshire Hathaway Inc. took a new stake in Apple Inc. in the first quarter, a move that comes as the technology giant's shares have been battered amid a slowdown in iPhone sales.

The legendary investor's firm reported owning 9.81 million shares of Apple as of March 31, valued at about $1.07 billion.

Mr. Buffettt likely saw a buying opportunity as Apple shares are off sharply from last summer's highs as the company struggles to maintain the sales surge that followed the introduction of its larger-screen smartphones in late 2014. The 2015 successors to those initial big-display models haven't garnered as much enthusiasm from consumers.

Apple shares traded above $130 a share last July and ended the first quarter at $108.99. But they have since dropped further as the company reported its first revenue decline since 2003 last month.

Mr. Buffett's positions were disclosed in a 13F filing with the Securities and Exchange Commission, a quarterly requirement for investors managing more than $100 million. The report indicates the number of shares held and the value of each stake at the end of the quarter, so it isn't clear if Mr. Buffett has continued buying the shares since the quarter ended.

Apple shares, meanwhile, got a bounce premarket on his investment, rising 2.1% to $92.49.

Mr. Buffett's investment in Apple follows the exit of another activist, Carl Icahn, who said last month he had sold his big position.

Berkshire, which for years had avoided technology stocks, also increased its position in International Business Machines Corp. by 198,853 shares. He first bought IBM stock in 2011, making an investment worth more than $10 billion.

IBM is one of Mr. Buffett's big four investments, along with Kraft Heinz Co., Wells Fargo & Co. and Coca-Cola Co. Those three positions were unchanged in the first quarter.

Berkshire, however, eliminated his position in AT&T Inc.

Write to Lauren Pollock at lauren.pollock@wsj.com

 

(END) Dow Jones Newswires

May 16, 2016 08:35 ET (12:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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