Apple Inc. (NASDAQ:AAPL) has been out of major M&A headlines for quite a while and one wonders whether 2016 will be the year that the company pulls a surprise. The reason a major acquisition may be in order for Apple is that the company is predicted to face iPhone sales pressures as the high-end market becomes more competitive and smartphone market in developed countries matures.
According to analysts at FBR, when it comes to M&A, there are particular companies that Apple Inc. (NASDAQ:AAPL) could be more interested in acquiring. These potential buyout targets for Apple include action camera maker GoPro, Inc. (NASDAQ:GPRO), Tesla Motors Inc (NASDAQ:TSLA), Box Inc (NYSE:BOX) and Adobe Systems Incorporated (NASDAQ:ADBE). With $200 billion, it is difficult to image an acquisition that would be too difficult for Tim Cook and Co to swallow.
What about GoPro acquisition
GoPro’s high-power camera business and drones agenda seem to make sense for Apple’s media ecosystem that includes Apple TV, Apple Watch and iTunes. Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) all are ahead in drones technology and Apple would want to catch up. GoPro can accelerate its efforts there.
Can Box boost Apple’s enterprise business?
Acquiring Box, according to FBR, could help Apple add fuel to its enterprise engine. Enterprise cloud is one area where Box could be of significant benefit to Apple. In the enterprise space, Apple is currently trying to hang on the International Business Machines Corp. (NYSE:IBM)’s coat to penetrate the segment.
Can Adobe help Apple drive hardware sales?
With Adobe, Apple could not only penetrate expand into the all-important creative space, but also drive the adoption of its devices such as Mac and iPads for creative works.
Tesla for Project Titan
FBR notes that Apple’s secretive car project code-named Project Titan could benefit immensely from Tesla buyout.
With Morgan Stanley predicting 13 million units decline in iPhone sales in 2016, Apple certainly need to accelerate its revenue diversification efforts. That explains why a major acquisition in 2016 looks all the more important and necessary.
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