Time For Apple To Go On An Acquisition Spree?

Analysts predict that sales of Apple Inc. (NASDAQ:AAPL)’s flagship iPhones may decline in 2016. The Cupertino company doesn’t have large streams of recurring, high-margin revenues to offset a slowdown in iPhone sales. With more than $200 billion in cash, will chief executive Tim Cook go shopping? The iPhone maker doesn’t have a history of big-ticket acquisitions. But Cook surprised the industry by acquiring Beats Electronics for $3 billion, the biggest deal in the company’s history.

Apple Car Tim Cook

Box and Adobe could give Apple’s enterprise efforts a big boost

ClearPath Capital Partners chief investment officer Brendan Connaughton told MarketWatch, “Now they are looking for growth in a broader sense.” FBR Capital Markets analyst Daniel Ives believes Tim Cook is “starting to get to a point where cash is an overhang.” If Apple does go shopping, which companies would be on its list? Mad Money host Jim Cramer has his own list of companies he would buy if here were the CEO of Apple.

But Apple may prefer to go for strategic acquisitions instead of following Cramer’s recommendations. The tech giant has been pushing aggressively into the enterprise sector by signing a deal with IBM and launching the iPad Pro. As the company focuses more on the enterprise, it may buy Adobe and Box, says Daniel Ives of FBR Capital Markets. Box would enable the company to ramp up its iCloud platform into the enterprise market.

On the other hand, Adobe’s Creative Suite of software products, analytics services, and other enterprise-focused offerings could give a big boost to Apple’s enterprise effort.

GoPro and Tesla are well-established brands

Another potential acquisition target could be GoPro, which offers action cameras to adventure enthusiasts, and is currently building a media empire. Ives said in a research note to investors that GoPro’s action cameras are “uniquely positioned at the intersection” of Apple’s smartphone, wearable, and multimedia offerings. The Cupertino company may sell GoPro’s action cameras and future drones at its retail stores.

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Sandra Sinclaire 4 years ago Member's comment

Elon Musk will tell Apple to stuff it. GoPro $GPRO on the other hand would benefit greatly from Apple's master of marketing.