Tim Cook During Q2 Earnings: ‘We Are Always Looking to Buy Companies’

Apple CEO Tim Cook
Courtesy: Apple

Yesterday, during Apple’s earnings call for the second fiscal quarter of 2022, CEO Tim Cook stated the company’s policy regarding acquisitions of other companies, saying that Apple is always looking to buy companies. However, it is not a priority for it to do so.

During the FY 2022 second-quarter earnings call, a questioner asked Cook why Apple is not acquiring large companies that focus on content, health, or fitness products – referencing Netflix and Peloton –. The questioner said that Apple has billions of dollars that would make it easier for them to purchase such companies.

Analysts see Netflix and Peloton as great offers for the Cupertino-based giant in order to expand the categories it holds on to. Netflix is beneficial for Apple TV+ as a massive library and popular content would be owned by Apple. While Peloton could help Apple improve the Apple Watch as well as Apple Fitness+ as sports products and fitness subscriptions respectively.

More than a week ago, in its Q1 2022 report, Netflix announced that it has lost more than 200,000 subscribers for the first time in decades, blaming password sharing as well as intense competition from the likes of Apple TV+, Disney+, HBO Max, and Peacock, and more. Meanwhile, Peloton is struggling with an executive overhaul and cutting the prices of its products.

Cook answered by not ruling out any company acquisition but stated that Apple is not prioritizing such work. Instead, the company is focusing on the search for IP and talent – in other words: Apple is working on buying smaller companies and startups.

“We are always looking at companies to buy. We acquire a lot of smaller companies, and we’ll continue to do that for IP and to incorporate talent. We don’t discount something larger if the opportunity presents itself. I’m not going to go through my list with you on this call, but we’re always looking.”

Apple has reported its financial earnings for the second fiscal quarter of 2022, which ended on March 26, 2022. $97.3 billion increase in revenue, 9 percent more than what analysts were expecting from the company’s performance – the largest non-holiday quarter –.

Heedo Abu Laban
Author: Heedo Abu Laban

18 years old | News Editor and Writer at Appleosophy | former writer at Kernelnow.com | a big fan of tech + politics | Twitter: @HeedoAbuLaban

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