Jean-Louis Gassée for Monday Note:
The most that Apple has ever paid for an acquisition was $429M (plus 1.5M Apple shares), and that was for… NeXT. An entire operating system that revitalized the Mac. It was a veritable bargain. More recently, in 2012, it acquired AuthenTec for $356M.
…Apple acquires technologies, not businesses. Even if Apple were in the business of buying businesses, a $300M enterprise such as Nest wouldn’t move the needle. In an Apple that will approach or exceed $200B this calendar year, Nest would represent about .15% of the company’s revenue. link
Summarizing Gassée, Apple buys what it needs to improve its core business: personal computing devices and their relevant ecosystems (i.e. App Store), and Google buys…not exactly clear. A good read.