Moscow, may 7 — “News. Economy” Apple became more active in the takeover market and buys companies with enviable regularity. Although the trades do not always fall into the reports, this trend cannot be ignored.
That Apple buys a company on average every 2-3 weeks, in an interview with CNBC said its chief Executive officer Tim cook. He noted that over the last six months have purchased some 20-25 companies.
Tim cook “we have money, we’ll see what else I can do. We purchase everything we need that can meet our needs and has a strategic purpose. Therefore, we acquire, on average, every two to three weeks”.
In order to evaluate the increased activity of Apple, suffice it to say that for all of last year, the company acquired 18 companies.
However, the tech giant is behaving quite secretively. He seldom announces or confirms their purchase, with the exception of General statements that “from time to time buys smaller technology companies”.
Among the most important acquisitions of recent years is to provide buy Beats in 2014 for $3 billion, the largest acquisition in Apple’s history — the app to automate Workflow, the transaction took place in 2017 and the application of Texture in 2018..
According to the latest quarterly report, Apple still has huge cash reserves of $113 billion, so the “giant Apple” can afford to lead so active in acquisitions of various companies.
Shares in the company this year feel very confident. For comparison, the capitalization of Apple since the beginning of the year increased by 32%, and the Dow Jones index is only 13%.
In General, in one way or another, all the major companies adhere to this strategy, occasionally acquiring various start-UPS or already established but small company. It allows us to increase the list of services and products, and to integrate these or other applications. Moreover, often the purchase of a company gives access to new technologies.
All this is done to gain or maintain its market share, though, is to say that some acquisitions are unsuccessful and do not give the desired result.
By the way, from the point of view of many consumers, Apple in recent years, not too often pleases the novelties and new gadgets do not carry any breakthrough technologies, creating an improved versions of previous models.
IPhone sales fell by 17%, but the service business of Apple growing, Apple announced financial results for the second quarter of 2019 fiscal year ending March 30, 2019, Revenue for the quarter totaled $58 billion, which is 5% lower than a year earlier, and net income per share for the quarter amounted to $2,46, which is 10% less. International sales accounted for 61% of the quarter’s revenue.
The Apple financial results came in slightly above consensus estimates of $57.4 billion of revenue and $2.36 in net profit per share. At one time the staggering success of the iPhone helped Apple quickly become the most valuable company in the world. Now weak sales of smartphones Apple pulled the business down.
Apple faced stiff competition in China from competitors such as Huawei and Xiaomi that offer cheaper phones, while Apple sells phones with exorbitant price tags.
Apple is a bit compensated for the fall in iPhone sales continuing growth of its business to digital services. Services segment, which includes products such as Apple Pay, Apple Care and Apple Music, received a record revenue of $11.5 billion, which is 16% higher than a year ago. Currently it is the second largest source of Apple’s revenue, outpacing Mac and iPad.
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