) recently entered into a definitive agreement to acquire Santa
Monica-based Burstly. The financial details of the deal, however,
were not made pubic. As per TechCrunch, the employees of Burstly
have already started working for Apple.
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Burstly provides analytics tools for app developers. It allows
app developers to make their apps available for testing by
outside users. Moreover, developers can access the services
provided by Burstly at no additional costs, a feature which makes
it more lucrative.
This acquisition indicates that Apple could be in the process of
making internal changes to its own app-testing systems and terms
of service. Apple's iPhones and iPads require a rich environment
of cool new apps for usage. Burstly will help Apple ensure ample
supply of properly tested apps for users.
Additionally, we believe that Apple-owned beta-testing may prove
to be more robust especially since Apple is preparing for an
App/Game store on Apple TV.
In contrast to the acquisitions made by competitors like
) that involve huge sums of money, Apple has been acquiring
smaller companies, usually which have a robust engineering
We believe that Apple's intention to extend its foothold into new
product categories such as healthcare and cars in the near-term
will drive growth and profitability going forward.
Apple's loyal customer base, international expansion, competitive
pricing strategy and a solid cash position will aid long-term
growth. However, increasing competition from the likes of Google,
) in most of its major product segments, possible delays in
product launch, higher operating expenses and increasing legal
complexities are headwinds.
Currently, Apple has a Zacks Rank #3 (Hold).