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Why is Apple not fond of acquisitions like Google?
Upon seeing the latest trends in acquisitions, the corporates are eyeing on well established startup/small companies to enhance their product line or to find grounds in the market.
But mostly, Apple is sticking with their minimal set of digital, software and hardware establishments. Why?
But mostly, Apple is sticking with their minimal set of digital, software and hardware establishments. Why?
technologyunderstand
Microsoft, Google and Apple are all publicly traded companies on the stock market, so it's safe to say they have investors. Apple is not a charity. The point of a public company is to provide value to the shareholders, not the consumer. The most popular ways to do that is to...
America sadly has a law that sadly requires corporations to make as much money as they possibly can. For a company like Microsoft, that is hard for obvious reasons. In the world of Wall Street, steady growth is not accepted. They want perpetual accelerating growth. To get that, they have to do two things.
Despite Microsoft's high profits, from a shareholder's point of view, they are a failing company. Microsoft makes money by constantly releasing new versions of their software. I'm sure you hear all the time about how people hate Microsoft and how their products are bad.How do they combat that from a shareholder's point of view, if they are already making new versions? Acquire companies to expand into new markets, so they don't lose money. Problem solved.
Google makes its money through selling advertising. The advertisers are the customers, and you are the product. Google needs your eyeballs on the internet. That's why Google makes free products like Android, Sketchup and Google Earth. Google has got to the point where it cannot make any more money than it already is. I don't know the term for that. To follow the law, they acquire companies, and make new stuff like Chrome and Android. The more time you spend online = The more money Google makes.
Apple on the other hand, does things differently. Apple deliberately restricts the market share of its products in order to make the most money. It targets the higher tier market. While most technology companies release a product at a high price, and discount it months later, Apple does nothing of the sort. Apple does not want to the the number 1 product, it wants to the number 1 money maker.
If Apple wanted to make a new iPhone with a keyboard, they would. But they wouldn't make as much profit if they did.
If Apple wanted to license their software to other computer manufacturers, they would. But they wouldn't make as much money if they did. Apple makes its money through hardware. If people never brought Macs and brough Mac OS X instead, they would go bankrupt.
Apple makes the most money by...
When you run a company like that, it's no wonder why they can come up with the best products. They gain brand loyalty because of this, and that's why there are so many Apple fanboys.
Microsoft and Google keep acquiring companies because they are legally obliged to. Apple on the other hand has come up with a clever way not to do that, and do their own thing.
Steve Jobs is more clever at business than you think he is.
For more information, read this article
http://techcrunch.com/2009/11/11/while-rivals-jockey-for-market-share-apple-bathes-in-profits/