Apple’s biggest mistake under Tim Cook so far? Not buying Netflix

“Apple’s biggest mistake under CEO Tim Cook has been not acquiring Netflix, a strategist told CNBC on Friday,” Chloe Taylor reports for CNBC. “Speaking to CNBC’s ‘Squawk Box Europe,’ Daniel Ives, managing director of equity research at Wedbush, said Apple was currently facing its ‘darkest chapter’ since the iPhone era. “‘(But) we’re bullish on Apple’s services,’ he said. ‘The next few quarters will be an uphill battle, but we’re predicting a trillion-dollar market cap for Apple in 2019.'”

“In order to move into a new growth phase, Apple would have to invest in its services offering, Ives added,” Taylor reports. “‘You need content, you need fuel in that engine. They’re lacking original content and lacking video content, which is why we believe they’ll buy a large film studio in 2019,’ he told CNBC. ‘We’ve talked about potentially Sony, Lionsgate, A24 – a CBS or Viacom is potentially still on the table as well as a Netflix, as that’s the key to drive the services business… In my opinion, the biggest strategic mistake Apple has made since Cook took over is not buying Netflix. That was the deal that they needed to do because it comes down to content.'”

Read more in the full article here.

MacDailyNews Take: Horse hockey.

Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm. — MacDailyNews, January 31, 2016

What is unique about Netflix? A handful of TV series are not worth $40 billion. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc. — MacDailyNews, May 27, 2016

SEE ALSO:
J.P. Morgan: Apple should buy Netflix, but it would likely cost at least $189 billion – February 4, 2019
Citi analysts: 40% chance Apple will acquire Netflix now that President Trump’s corporate tax cut has been passed – January 2, 2018
Citi: Apple 40% likely to acquire Netflix, 5% likely to acquire Tesla – May 5, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
No, Apple doesn’t need to buy Netflix – February 22, 2017
Why Apple should buy Netflix or something – February 22, 2017
Apple’s arrogance said to contribute to struggles to make big deals – February 15, 2017
Apple hires Amazon’s Fire TV head to run Apple TV business – February 8, 2017
Why Apple should buy Disney – January 26, 2017
Apple’s new TV app shows just how painfully behind Apple is – December 14, 2016
Apple approached Time Warner about possible merger before AT&T talks – October 21, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Google signs up CBS for planned web TV service to debut in early 2017; close to deal with 21st Century Fox – October 20, 2016
Bernstein: Apple buying Netflix would be a waste of $50 billion – October 5, 2016
A chance for an Apple buyout offer as Netflix stumbles – July 19, 2016
Here comes á la carte programming – without Apple – July 13, 2016
Should Apple absorb Netflix? – July 11, 2016
Apple to buy Netflix? – May 27, 2016
Should Apple buy Netflix for $53 billion? – May 10, 2016
Apple declines to place bid on NFL Thursday Night Football – March 3, 2016
Why Apple should buy Netflix – January 7, 2016
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015
Apple made ‘audacious bid’ for Top Gear trio of Clarkson, Hammond and May, but lost out to Bezos’ Amazon – September 1, 2015
Why Apple should buy Netflix – April 21, 2015
Why Apple should buy Netflix – March 26, 2014
Jim Cramer: Apple should buy Twitter or Netflix to spur growth – February 7, 2013
The Netflix buyout battle: Apple vs. Time Warner – April 10, 2012

20 Comments

  1. Well, this is the management that acquired the Beats at $3B or some such!
    Despite its huge cash pool, we seldom heard about Apple’s investments (maybe Project Titan? Ha!) and acquisition for future growth. So, out of curiosity, a couple of years ago, I briefly investigated what investment Apple has been making for diversification and future growth. As far as I could tell, there has been no bold and important acquisition ever since Tim Cook succeeded Apple. There have been many attempts to buy out firms in the iPhone supply chain, most of which were tiny to small. But most telling was Apple’s attitude to exploit the target acquisition. For example, they tried to acquire a small supplier (in overseas) of a unique component for the 3D imaging (I do not remember the firm), it’s a relatively small amount (some $30M or so). Owner of the business was delighted but Apple apparently made a very hard (cheap and ruthless) negotiation and the owner of the biz was turned off and gradually lost interest. While Apple really wanted it, the owner realized that all Apple wanted to price was his engineering staff. So the owner immediately called off the negotiation. Cook’s investment has been mostly small and heavily oriented toward his iPhone supply chain.
    I firmly believe he has no stomach or bold investments that will contribute to the future growth of Apple, whether they are related to their current line of business or the diversification. He does not seem to know how to effectively take advantage of the huge cash pool Apple is sitting on (for now). He is certainly not a type of person to predict the (near” demise of Adobe Flash way before anyone could even think about it. Anyway…

    1. Have to wonder why.
      No stomach for a big deal?
      Cheapskate offer?
      Petty, but arrogant and greedy negotiation?
      Target did not even entertain such an offer from Apple?
      Or all of above?

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