Apple Inc. (NASDAQ:AAPL) chief executive, Tim Cook said, while speaking at the Goldman Sachs Technology and Internet Conference, that his company is looking to make some blockbuster acquisitions. But none of the companies Apple considered for acquisition could pass its tests. Cook assured investors that the company will keep looking at a large target company.
On an average, the iPhone maker has acquired one company every other month, to add intellectual property and smart people under its umbrella. But, most of those purchases have been very small. Tim Cook said when looking for an acquisition, Apple Inc. (NASDAQ:AAPL) likes to control the primary technology, not just the product. He said Apple Inc. (NASDAQ:AAPL) is not under pressure to go acquire revenues.
Apple Inc. (NASDAQ:AAPL)’s avoidance of large deals has helped the company stay away from the pitfalls that other tech companies with large acquisitions have faced. “We want to make great products — if a large company could help us do that even better, then that’s of interest,” said Cook.
Tim Cook revealed that Apple Inc. (NASDAQ:AAPL) has distributed a whopping $8 billion to app developers. He said the company has “enormous momentum” in the tablets and smartphone markets. And the primary reason behind that is the ecosystem around its devices. “We built an ecosystem that is the best customer experience on the planet,” Cook said. He added that Apple App Store has recorded over 40 billion downloads, about half of that coming in 2012 alone!
In response to a question about launching affordable devices for emerging markets. Cook was quick to mention the lowered prices of the iPhone 4 and iPhone 4S. The demand was so high that the company didn’t have enough supply. The prices of iPod have fallen from $349 to $49. When people asked him why Apple Inc. (NASDAQ:AAPL) can’t make a $500 Mac, Cook said the company considered it but decided against it because it would have affect quality. So, Apple Inc. (NASDAQ:AAPL) brought iPad.
iPhones are losing market share. Has the device reached its upward limit? Cook doesn’t think so. He said in Apple’s vocabulary, there isn’t any upward limit. The smartphone market is expected to double in the next couple of years. He said the company sees tons of opportunity in the emerging markets. “I see a wide-open field.”