Apple on Thursday announced its fiscal 2022 third-quarter results, which beat estimates with record numbers. During a call with investors, Apple CEO Tim Cook once again said that he doesn’t rule out acquiring large companies, but that Apple will never buy a company without having a strategic plan.
Apple wouldn’t rule out major acquisitions
During the call, Cook was asked about the services market, which is growing every year. The question was about Apple being interested in acquiring “external products” to expand its catalog of services even further, which may have been an indirect reference to Apple eventually acquiring Netflix.
Of course, Tim Cook didn’t provide details about Apple’s strategies, but he did say that Apple is “constantly surveilling the market” for potential acquisitions, and that Apple doesn’t rule out the possibility of buying a large company if it makes sense. However, Cook claims that Apple “never buys just to buy” and doesn’t ” buy for revenue.”
Apple’s CEO also reinforced that, at least for now, Apple remains focused on acquiring smaller companies and individual talent that can add to the company.
We always look and we ask ourselves how strategic it is. We never buy just to buy or just for revenue services. To date, we’ve done smaller IP and people acquisitions. I wouldn’t rule anything out for the future. We’re constantly surveilling the market.
This is not the first time Cook has been asked about Apple acquiring large companies. Back in April, the Apple CEO had already said that the company is always incorporating talent and that large acquisitions are not ruled out if it makes sense. According to some market analysts, Apple should buy companies like Peloton and even Netflix.
For Q3 2022, Apple reported $19.60 billion in service revenue, up 12% year over year. Overall, Apple reported revenue of $83.0 billion and a profit of $19.4 billion. Earnings per share hit $1.20 for the quarter. More details can be found on Apple’s website.
Read also:
- Apple narrowly beats estimates, reports record Q3 2022 revenue
- Tim Cook says Apple revenue will continue accelerating despite inflation, ‘pockets of softness’
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