For new products, Apple bought a different company every few weeks. In the meantime, the group has massively reduced spending on takeovers.
While other IT companies spend billions on large acquisitions, Apple remains on the brakes when it comes to company acquisitions: In the past nine months, the group has spent just under $170 million on acquisitions, according to a submission to the US Securities and Exchange Commission (SEC). . Only two Apple takeovers have been announced so far this year: These include a British banking startup that checks creditworthiness based on account activity and an AI tool for audio advertising and music customization. Last year, Apple bought Primephonic, a classical music streaming service that will soon return as an Apple app.
An Apple deal every three to four weeks
Apple was on a big shopping spree for more than a decade, paying around 3 billion US dollars for the acquisition of Beats Electronics in 2014 and thus buying its entry into the music streaming subscription business. From 2015 to 2020, the company then claims to have incorporated around 100 companies, which corresponds to about one deal every three to four weeks, as Apple boss Tim Cook explained at the time. Apple buys small companies and teams to “advance products”.
In the 2020 fiscal year alone, Apple recorded $1.5 billion for company acquisitions, but in 2021 spending was suddenly massively reduced to just $33 million. If Apple doesn’t make a spectacular, huge purchase in the next few weeks, spending will remain manageable in the 2022 fiscal year.
Regulators are eyeing “big tech” takeovers
Analysts keep speculating about deals worth billions: Industry giants from Netflix to Tesla, as well as film studios and media groups, were traded as possible takeover candidates. So far, however, Apple has never struck, even though Cook has repeatedly emphasized that they are “not afraid” of takeovers of any size.
Apple has not yet given any reasons for the drastic reduction in company purchases. The group currently appears to be acting more cautiously and sparingly overall. But Apple is also likely to shy away from headwinds from regulatory authorities: even small acquisitions are now viewed with suspicion.
