Apple (AAPL) Acquires Buddybuild to Simplify App Development

An image of multiple stacks of coins
Credit: Shutterstock photo

Apple Inc . AAPL recently acquired Vancouver, Canada based "mobile iteration platform", Buddybuild for an undisclosed amount. The move is expected to simplify app development for coders as Buddybuild can be integrated into Apple's suite of software development tools called Xcode.

Xcode, launched in 2013, is used for developing software for the company's various operating systems like macOS, iOS, watchOS, and tvOS.

Per a blog post by Buddybuild, the move will be instrumental in building "amazing developer tools for the entire iOS community."

Reportedly, by integrating with services like GitHub, BitBucket and GitLab, Buddybuild helps developers launch their apps faster.

Notably, shares of Apple have gained 48.5% in the past one year slightly outperforming the industry's 45.5% rally.

Apple's Gain is Android's Loss

Buddybuild, as part of the deal, will discontinue its service for Alphabet's GOOGL Android app development starting Mar 1, 2018.

In 2014, Apple, in a similar move, had acquired Burstly, the owner of mobile app testing platform, Testflight. As a consequence of the acquisition, Android lost support from Burstly.

Analysts mentioned that lower development costs for iOS apps compared to Android as reported by many companies has proved to be favorable for Apple.

Apple Inc. Revenue (TTM)

Apple Inc. Revenue (TTM) | Apple Inc. Quote

Platform for Developers

Apple has been undertaking a lot of initiatives to make the platform more attractive to developers. We note that the launch of iOS 11 has been highly beneficial for developers in creating apps aimed at both consumers and businesses.

The company's efforts to strengthen augmented reality (AR) features have given a solid boost to developers. ARKit was announced by Apple at its Worldwide Developers Conference 2017. It will help third-party developers to work on creating AR experiences for its iOS platform.

Moreover, integration of machine learning with Core ML in building apps is also attracting developers to the platform.

Apple also partnered with GE in October to enable developers create a series of industrial apps to iPhones and iPads.

As noted on the last conference call, Apple is also expanding its Swift curriculum to help students learn mobile application building and build the next set of software developers.

We believe that with all these factors, the popularity of Buddybuild is expected to draw the attention of more developers to the platform.

Zacks Rank & Other Stocks to Consider

Apple carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Micron Technology Inc MU , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.

Long-term earnings growth rate for NVIDIA and Micron is projected to be 10.3% and 10%, respectively.

Investor Alert: Breakthroughs Pending

A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.

Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.

Click here to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Micron Technology, Inc. (MU): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos