As per its recent ongoing press releases, iPhone manufacturer, Apple Inc. (NASDAQ:AAPL) confirmed its first ever decline in iPhone sales. With respect to that, CEO Tim Cook hinted to make remedy by opting shopping strategy.
He claimed his company to have acquired nearly 15 companies during the past four Qs – apparently seems as if they weren’t material enough for AAPL to disclose to its investors individually. However, the situation might change as when CEO revealed to go for another great acquisition.
“We’re always looking in the market about things that could complement things that we do today, become features in something we do, or allow us to accelerate entry into a category that we’re excited about. We would definitely buy something larger than we bought thus far. We’re very optimistic that this too shall pass, and that the market – and particularly us – will grow again.” – Tim Cook
After uttering some form of the word ‘optimism’ three times in the previous five earnings calls, he said it nine times yesterday.
Over overviewing the market platform, AAPLhad never been an acquisitive company in comparison to Silicon Valley tech giant i.e. Alphabet Inc., Facebook Inc. or Cisco Systems Inc.
INSIGHT: Apple marked its larger acquisition in history with an amount worth $3 billion to get a grip over headphone manufacturer, Beats Electronics LLC, back in year 2014.
“They haven’t said as much publicly before, so that’s the real change.” – JackDaw’s research analyst, Jan Dawson
He further suggested that AAPL’s budget for a potential large acquisition might fall in the range of $5 billion – $10 billion – moreover that price could be difficult while targeting a company based in the U.S.
The company might need to borrow money to fund a deal of that size with its overseas cash reserves.
“Anything larger would obviously be even more challenging, unless the asset is in an overseas market where they have cash locally.” – Dawson
Last year during the same period, AAPL’s Smart Watch had conquered the hearts of double the number of fans in China than in U.S or elsewhere.
