With its capital estimated to be around $ 2.1 trillion, Apple regularly buys startups and companies, but spends less money than other IT giants.
Over the past six years, Apple has acquired about 100 companies and startups, the BBC reports. In his speech at Apple’s General Assembly, Tim Cook said his company buys the company every three to four weeks on average.
So, at least 12 companies and startups came under Apple’s wing in 2020 alone. At the same time, Apple CEO stated that, as a rule, such transactions are aimed at acquiring talent and technology. Apple’s biggest acquisition in the last decade is Dr. rapper and hip-hop producer Dr. It was the 2014 acquisition of Beats Electronics, a well-known American headphone and speaker manufacturer founded by Dr.Dre and entrepreneur Jimmy Iovine.
The deal was then valued at about $ 3 billion, part of which was paid out in Apple shares. Another major Apple acquisition was Shazam, the maker of popular music recognition software. The iPhone maker paid around $ 400 million for Shazam in 2018.
But most of the time Apple buys small tech companies and spends less on such deals. For example, Microsoft paid $ 26 billion for LinkedIn, $ 13.7 billion for Amazon, Whole Foods, and Facebook $ 19 billion for WhatsApp, and if you compare them to the ten largest Apple purchases, the amount is still less than any of these three transactions.
Including purchased technologies in its products
Typically, Apple buys startups and includes their development in their products. For example, Israeli tech company PrimeSense played an important role in the FaceID facial recognition system that debuted on iPhone X in 2017. Apple also invests in server technology.
We can say that Apple’s buying and investment list is very diverse. For example, last year several AI companies bought a virtual reality event business, a payment platform, and a podcast company. In 2019, Apple acquired Drive.ai, a driverless bus company that confirmed its interest in the automotive industry, and in 2016 the company spent $ 1 billion to buy shares in the Chinese shipping service DiDi.
Despite this, Apple seems pretty selective in its purchases. For example, Tesla’s founder Elon Musk recently told Tim Cook in 2013 that he offered to buy the electric car company for a reasonable price, but refused. Wedbush Securities analyst Dan Ives said Apple made a huge strategic mistake a few years ago by not purchasing its Netflix streaming service.