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Social Capital CEO Chamath Palihapitiya says he changed his mind on Apple, here's why

  • Chamath Palihapitiya tells CNBC that Apple has an emerging business no one has been paying attention to.
  • He changed his mind on Apple after he noticed it.
  • On Monday, investors pushed market value to over $800 billion.

Social Capital Founder and CEO Chamath Palihapitiya told CNBC on Tuesday that Apple has an emerging business that no one has been paying attention to.

In an interview on "Squawk Box," Palihapitiya said at first he misunderstood it.

"The iOS business," Palihapitiya said. "All of the business of selling apps and selling subscriptions is extremely cruelly misunderstood, including by me."

"If you look at that business carefully, now I'm starting to get actually slightly more constructive on Apple than I've ever been," he said.

Palihapitiya said when looking at how much money Apple is making, "it is probably one of the single biggest software businesses in the world now."

"Hardware on the surface and some really powerful subscription and transactional software underneath," he said. "And I think that if you really value that you could probably get really constructive on it."

The comment came a day after investors pushed Apple's total market value to over $800 billion. Billionaire investor Warren Buffett praised the company, calling the iPhone, "a very, very, very valuable product."

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