10 Apple Acquisitions: What Do They Mean?
Apple has a habit of buying tech companies. Let's look at its most recent acquisitions and in what ways each might enhance the company's future.
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"Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."
This is the response that most people receive when they reach out to Apple spokespeople in an effort to confirm rumored acquisitions. Most of the time, Apple has a zipped-lips approach to discussing its purchase history. The company prefers to wait for the news to surface through the media or otherwise.
As of May 3, 2014, Apple had completed 24 acquisitions in the preceding 18 months, said CEO Tim Cook in an earnings call around that time. "That shows that we're on the prowl, I suppose you could say," he noted.
"On the prowl" seems like an understatement, given that Apple has not halted its buying spree since then. Almost one year later, the company has snapped up firms focused on big data, mapping technology, display production, and digital publishing. "We look for companies that have great people and great technology and that fit culturally," said Cook in that May 2014 earnings call.
[Some Apple Watch customers will get VIP treatment.]
Apple's long list of acquisitions over the past year range from Beats Electronics to analytics-powered book recommendation tool BookLamp. Such businesses provide both technology and talent that enable Apple to expand and improve on its vast collection of products and services.
While price isn't much of an issue for Apple, that doesn't mean it's willing to pay exorbitant amounts for every firm that comes into its possession. "We'll spend what we think is a fair price," Cook said in 2014. "What's important to us is that strategically it makes sense and that it winds up adding value to our shareholders over the long haul."
He further explained in 2014 that Apple watchers could expect to see more acquisitions in the future, "some of which we'll try to keep quiet and some of which seems to be impossible to keep quiet."
When it comes to Apple, the tech world is always talking, so it's no surprise that supposedly secret purchases have made their way into the spotlight. We discuss 10 that have surfaced over the past year and how they might help to shape the future of Apple.
Given the chaos that is the Apple rumor mill, there's a chance we may have overlooked a purchase or two in this roundup. If you know of anything we missed, feel free to mention it to us in the comments section below.
Apple most recently purchased Virginia-based FoundationDB. The data-focused startup was reportedly acquired and subsequently shut down by Apple on March 25. FoundationDB specializes in fast and long-lasting NoSQL databases that are popular for Web applications, and also inexpensive thanks to low-cost servers. It was working on technology that enables programs to access data quickly.
Such technology would be invaluable to Apple, which boasts a plethora of offerings, such as iTunes, the App Store, and iBooks, that all require quick access to data storage. This purchase also provides Apple with top-notch engineers and the ability to improve upon its data capabilities and broaden its cloud services.
Financial terms of the transaction were not disclosed. Neither company has confirmed the deal, which was reported by Business Insider and The Wall Street Journal.
Shortly before it purchased FoundationDB, Apple snatched up Acunu, a UK-founded database and analytics business built on NoSQL database Cassandra. The two acquisitions provide a clear indication that Apple is narrowing its focus on data infrastructure.
Looking back, the gradual migration of Acunu employees to Apple could have indicated a deal was in the works. Its CTO, Tim Moreton, started a new role as manager for Apple's iCloud division in December 2013, according to a Bloomberg report. The LinkedIn profiles of other employees reflect movement from Acunu to Apple in early 2014.
Apple reportedly purchased UK startup Semetric, the brains behind the Musicmetric music analytics platform, in January 2015. Musicmetric scans a multitude of online sources, such as Facebook and BitTorrent, and analyzes data to provide a comprehensive view of artists' popularity across the Internet. Users can filter information such as genre or concert location to determine the music trends of the moment.
The New York Times reported in January that Semetric filed a change of address to a London location that's closely associated with Apple. A knowledgeable source confirmed Apple's purchase, but could not elaborate on further details.
Apple's acquisition of Semetric is a sign that the company is looking to improve its musical services as more people ditch downloading in favor of online streaming platforms like Spotify. Musicmetric, which monitors such streaming websites, offers valuable information for music providers that could make Apple an enticing partner for artists and labels.
Not all of Apple's media efforts are concentrated on the music space, however. The Cupertino giant also has its eyes on publishing, as evidenced by its purchase of digital magazine startup Prss in September 2014. Prss uses a drag-and-drop interface to help people who lack coding knowledge to create iOS-compatible newspapers and magazines.
The acquisition was first reported by Dutch iOS blog iCulture, and followed by later posts on VentureBeat and TechCrunch. Apple, as per usual, kept quiet about the purchase, but Macrumors notes that Prss halted operations in July 2014 and moved a chunk of its Netherlands-based team to San Francisco.
With the addition of Prss technology, it's likely that Apple will work to improve its digital publication strategy. We could be seeing an update to its Newsstand app or iBook publishing functionality as a result.
In late June 2014, reports surfaced claiming that Apple was buying radio app Swell in a transaction valued at $30 million, wrote Re/code.
Swell's iOS app, which featured mostly news and talk-radio content, analyzed users' preferences to build individualized podcast streams. It was also created for use on the road. Drivers could simply hit play and listen in. Its App Store offering was free, and earned high reviews, with 436 users rating it an average of 4.5/5 stars, reported Apple Insider.
Swell's performance on the App Store outshines that of Apple's own Podcasts app, which has a low rating and plenty of negative user reviews. The app has since been shut down, but it's likely that Apple will use Swell's technology to improve its podcast offerings.
Around the same time Apple purchased Swell, it also stealthily bought BookLamp. Its deal with the Boise, Idaho-based "Pandora for Books" was reported by TechCrunch.
BookLamp leveraged big data to develop a book analytics service. Its most well-known creation is the Book Genome Project, which analyzes specific book scenes and details to provide similar recommendations to users. For a price tag between $10 million and $15 million, Apple gained technology and talent that could be of huge benefit to its iBooks service.
Much in the same way that Apple is targeting Spotify with its music projects, the company could seemingly use BookLamp to battle Amazon in the e-book space.
Apple agreed to purchase Beats Electronics and streaming service Beats Music in May 2014 for a total of $3 billion. It officially welcomed Beats "to the family" in August 2014.
A combination of Beats' core headphones division and music service persuaded Apple to seal the deal. Now, the company is working on the launch of its own subscription streaming service, the Times reported on March 25, in addition to an improved iTunes Radio. If Apple achieves its goals, we might be seeing more new albums on iTunes before they launch anywhere else, according to sources close to the company.
Apple is counting on Beats as a key player in its digital music strategy, as evidenced by the project's leadership. Nine Inch Nails frontman Trent Reznor, the former chief creative officer for Beats, is a driving force behind the changes to its music app.
Social maps app Spotsetter became the apple of Apple's eye, and the target of a reported acquisition in June 2014, wrote Tech Times. This time, it seems that Apple's native Maps offering could be on the verge of redesign.
Spotsetter scours social media outlets, such as Twitter, Instagram, Foursquare, and Facebook, to pull and analyze data that informs recommendations of nearby bars, restaurants, and other establishments. Users have access to places that their friends have been to and reviewed. Yes, Foursquare already does this, but Spotsetter is different in that it takes information from multiple social outlets.
Apple's Maps app needs work, and Spotsetter's technology could help it become more competitive with popular services such as Google Maps. Spotsetter has since been shut down.
Anonymous sources spoke to Apple's acquisition of LuxVue Technology in May 2014. The Silicon Valley-based firm produced micro-LED screen technologies, which could eventually be included in Apple devices.
PC Mag speculates that this purchase could reflect a change in Apple's strategy to bring display panel manufacturing in-house. It also cites John Doerr, partner at venture capital firm Kleiner Perkins, stating that LuxView had created displays that could save device battery power.
Burstly, the creator behind iOS testing service TestFlight, was acquired by Apple in February 2014, reports Re/code.
TestFlight was a popular app among mobile developers because it allows them to test early versions of their apps without going through the App Store. It also provides data on how apps are performing, the success of in-app purchases, and broader audience engagement.
Since the acquisition of Burstly, TestFlight has cut support for Android devices and mobile analytics platform FlightPath. Less than a month after the purchase reportedly took place, Burstly gave notice that it would be ending its publishing and SDK licensing agreement.
The Burstly team had already been moved to Apple by the time the acquisition was reported in late February 2014.
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