Apple Inc. (AAPL) M&A Activity Makes Sense: Jon Swartz


Apple Inc.’s (NASDAQ:AAPL) activity when it comes to mergers and acquisitions makes sense, Jon Swartz said in an interview with Josh Lipton aired on CNBC.

Apple, is Apple a good stock to buy, mergers and acquisitions, Jon Swartz

Asked whether Apple Inc. (NASDAQ:AAPL) and its recent acquisitions over the years, particularly its acquisition of BookLamp, is a rational move, Swartz agreed. He noted that this is a new strategy for the iPhone-maker and is likely instituted by its CEO Tim Cook.

“I think they all [make sense]. I think you actually have to take all these acquisitions together, and there are nearly 20 over the last couple of years, [to see that they]signify that Apple is getting into niche markets where it is doing extremely well and it has decided it’s not going to invent everything. It’s going to acquire companies that are good and useful to it and I can explain to you later why that is particularly important on the radio and podcast app and also in books. They are trying to compete with Google, Amazon and Yahoo who are also in the midst of buying sprees. So it is kind of this Apple shift in strategy. It’s a Tim Cook idea. This is why they are doing the deal with IBM on the strategic partnership. They realize they can’t do it all themselves and they need to reach out to others and just bring them in-house.”

Asked about Apple Inc.’s (NASDAQ:AAPL) acquisition of Swell for $30 million, the USA Today San Francisco Bureau Chief said that the company is acquiring the radio app to bolster its other businesses which it also sees a profit in.

“If you look at their quarterly results, the hardware sales are still fine for iPhone. They are up about 15% year-over-year but for iPad they are down. For McIntosh, they are up but McIntosh is just a small segment. When you look on the flipside though at what is really doing well, it is iTunes. It’s up year-over-year by a factor over the others. That signifies to me that Apple, while they are shoring up the hardware side which we will see very soon, they need to address these other areas which are bringing in revenue.”

Watch the discussion about Apple Inc. (NASDAQ:AAPL), including its acquisition of Beats Electronics and what that means to the company, below.


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