) has reportedly acquired personal assistant app provider - Cue.
According to TechCrunch, the iPhone maker has shelled out around
$50 million-$60 million for the app and service of Cue.
Cue, known as Greplin before it was renamed in Jun 2012,
provides mobile app for iOS that collects relevant information
from users' email and social/professional networking platforms
), Twitter and
) and displays it on the mobile screen from time to time. This
allows users to get all the information through a single app.
This is a strategic acquisition for Apple as it will help to
integrate social networking capabilities to its operating system.
Google Now has similar capabilities. Apple has a strategy of
acquiring small startup companies whose expertise and
capabilities synergize with its current operations. This has
helped the company to not only overcome small but critical snags
but also enhance its services.
The company has been very active on the acquisition front in
2013. The Cue acquisition is Apple's eighth, to date. Very
recently, the company acquired AlgoTrim, which provides data
compression capabilities. Other acquisitions are predominantly
made to enhance Apple's mapping, media search capabilities.
Moreover, Apple has a strong balance sheet with cash and
investments of $117.2 billion which allows the company to go for
strategic acquisitions to bolster its service. However, Apple
continues to face significant competition from the likes of
) and Amazon in most of the markets it operates.
Nonetheless, we believe that Apple remains the biggest growth
story over the long term based on its superior product pipeline,
Apps, iCloud and loyal customer base. In our view, Apple is also
well positioned to gain from international expansion, going
Moreover, the recent shareholder-friendly moves such as
dividend payment and share buybacks are expected to drive the
Currently, Apple carries a Zacks Rank #2 (Buy).
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