During Apple’s FY22 Q2 earnings call, CEO Tim Cook was asked about Apple’s acquisition strategy. According to Cook, Apple is not so much interested in acquiring other big companies as it is in attracting new talent.
The question was specifically about why Apple isn’t acquiring major health, content or fitness companies (meaning Peloton and Netflix). The questioner noted that Apple has billions of dollars on hand, which makes these acquisitions quite possible.
While Tim Cook said that Apple does not rule out acquisitions of large companies, he did mention that Apple is focusing on acquiring companies in search of intellectual property and talent, which Apple also finds in smaller companies and startups.
Cook even joked that he does not discuss on his phone a list of companies that could be acquired by Apple.
We are always looking for companies to buy. We are acquiring many small companies and we will continue to do so for intellectual property and talent. We don’t discount anything more if the opportunity presents itself. I’m not going to discuss my list with you during this call, but we’re always on the lookout.
Many market analysts have already called for Apple to acquire fitness company Peloton, which will help develop the Apple Watch and Apple Fitness+. Some analysts also believe that Apple should have bought Netflix rather than work on Apple TV+ from scratch.
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Apple this quarter reported $97.3 billion in revenue, $25 billion in earnings and $1.52 earnings per share. While the iPhone segment remains Apple’s most important segment, the services category grew the fastest year-over-year with $19.82 billion in revenue.
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