Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Acquisitions: Apple Always on the Lookout for Acquisitions

Page 1 of 2

Apple Acquisitions: It is no secret that Apple Inc. (NASDAQ:AAPL) has acquired companies in the past. With that being said, most of the company’s acquisitions are of smaller startup companies.

A Leading Company Cheaper Than 90% Of Blue Chips... And It Recently Bounced 12%While speaking at the Goldman Sachs’ Technology and Internet Conference, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook took the time to discuss the company’s views on acquisitions, more specifically why they don’t typically target large companies.

As cited by AppleInsider, Cook had quite a bit to say regarding the purchase of smaller companies:

“If you look at the past three years, we’ve averaged about an acquisition every other month. They’re companies where they have really smart people and/or IP. Generally speaking, we’ve been in many cases taking something they’re working on and move the skills to work on something else.”

In other words, Apple Inc. (NASDAQ:AAPL) does not always look at revenue and potential profit when acquiring a company. In fact, it appears that the strategy is to find smaller operations with smart employees and/or IP.

Later on, he discussed the company’s acquisition of PA Semiconductor:

“This was an incredibly skilled group of guys, and they could supplement an incredible group of folks and they were working on PowerPC at the time. We didn’t have an interest in that, so we moved the skills to work on our iPhone and other engines. We will do more of those.”

As you can see, Apple Inc. (NASDAQ:AAPL) purchased this company because they wanted to take the employees and put their skills to use on iPhone and other projects.

Why wouldn’t Apple Inc. (NASDAQ:AAPL) consider purchasing larger companies, being that they have more than $125 billion in cash on hand? While Cook does not rule this out in the future, he is adamant in saying that the company has a “test” for making such a big decision.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!