Tim Cook says Apple won’t rule out acquiring large companies, but its focus is on IP and talent
During Apple’s fiscal Q2 2022 earnings calls, company CEO Tim Cook was asked about Apple’s strategy for acquiring other companies. Cook stated that Apple doesn’t care about acquiring large corporations, but rather about integrating new talent.
The question was specifically about why Apple doesn’t acquire big companies in the health, content, or fitness segment (in references to Peloton and Netflix). The questioner noted that Apple has billions of dollars on hand, which makes these acquisitions entirely possible.
Though Tim Cook stated that Apple does not rule out the possibility of acquiring large businesses, he also mentioned that Apple is focused on acquisitions in search IP and talent. This is what Apple can also find in startups and smaller companies.
Cook even joked about not discussing the list of potential companies to be acquired by Apple on his phone.
We are always looking at companies to buy. We acquire a lot of smaller companies, and we’ll continue to do that for IP and to incorporate talent. If an opportunity arises, we don’t hesitate to acquire a larger company. While I won’t be going through all of my lists with you during this conference call, we are always open to discussing them.
Multiple analysts in different markets have stated that they support Apple’s acquisition of Peloton to help with the creation of Apple Watch and Apple Fitness+. Some analysts believe Apple should have purchased Netflix rather than starting Apple TV+ completely from scratch.
Apple this quarter reported a revenue of $97. 3 billion, with a profit of $25 billion and earnings-per-share of $1.52. While the iPhone segment remains the most important for Apple, the services category was the fastest growing compared to last year with $19. 82 billion in revenue.
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