Tomahawk, WI 01/06/2014 (BasicsMedia) – Investors tracking Apple Inc. (NASDAQ:AAPL) as an investment option should realize that the company is changing of late. As to whether these changes are going to result in benefit to shareholders is the hope of every investor. Many investors had started growing wary of the stock because of various visible factors.

Among the many things that have not being going down well with Apple Inc. (NASDAQ:AAPL) investors is the company’s continued loss of market share in strategic regions such as China. Even more worrying to investors was that Apple Inc. (NASDAQ:AAPL) was doing very little to counter the mounting opposition in the global smartphone market.

At a time when its peers were upping their innovative edge through acquisition, the company relied on its in-house talents. And this could be the reason the company has fallen behind competitors in some markets. The good thing is that it the management has realized this mistake and is working hard to put the company at the top of the technology cliff again.

Acquisition is the way

Apple Inc. (NASDAQ:AAPL) is now acquiring smaller firms with promising technology to boots its performance. Apple Inc. (NASDAQ:AAPL) manufactures iPhones and iPads as its core products. However, it also has a hand in PC manufacturing and it recently refreshed this line with the launch of Mac Pro last month.

The market for iPhones is under great pressure from smartphones manufactured by rival Samsung and other low-cost smartphone makers. While iPhones won the hurt of users with their clear technology distinction, they have lost this edge over time such that they are vying for attention in the league of low-cost smartphones.

In order for iPhones to maintain their appeal to the high-end smartphone market, Apple Inc. (NASDAQ:AAPL) needs to unleash cutting-edge technology. The company is currently spending its billions to do just that.

Last year it bought about 11 companies with promising technology in mobile app and sensor technology. In a continuation of its innovation acquisition strategy, the company has acquired SnappyLabs, the company that makes mobile camera app called SnappyCam. The transaction details for this latest acquisition remain scant; however, it is known that SnappyCam is a clever technology which allows smartphone users to take rapid photos.

Innovation acquisition

Apple Inc. (NASDAQ:AAPL) is one company that doesn’t need to worry much about the market. It always has the people as long as it is offering what is expected of it. It is a good thing that it has been able to enter into distribution deals with the leading carriers in China, the latest on being with China Mobile (CHL). However, the company’s full potential lies in coming up with cutting-edge technology which will clear distinguish its idevices from the rest of the market.

Apple Inc. (NASDAQ:AAPL) has indicated that it intends to launch a smartwatch that would rival Samsung Gear from Samsung Electronics, however, giving the market just a replica of what is already in the stores may not work best for the stock.

Bottom line 

That Apple Inc. (NASDAQ:AAPL) has discovered innovation acquisition as the way to retain its top position is good news for investors. Acquiring technology is sometimes the cheapest way to sharpen a company’s innovative edge. Usually the acquiring company is spared the cost a lot of cost in research and development of a new technology.

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