There's been an awful lot of negative attention surrounding Apple's (NASDAQ:AAPL) acquisition of Beats. Much of that skepticism is due to the fact that Beats is unlike any other Apple acquisition that's come before it. However, that could actually prove to be a net positive development, as it signals a major change in Apple's broader acquisition strategy.
With the price of innovation effectively going up, as evidenced by rival tech heavyweights scooping up smaller companies at lofty valuations, Apple can't let price stand in the way. There's no reason why the richest company in the world should let cost become an obstacle.
As Apple's current businesses mature, that necessitates a certain level of risk-taking in pursuit of the next big thing. The key that Tim Cook has discussed is that Apple only cares if an acquisition is the right fit in the long-term, and that price should not be a limiting factor. No pain, no gain.
In this segment of Tech Teardown, Erin Kennedy discusses Apple's strategic shift with Evan Niu, CFA, our tech and telecom bureau chief.
Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: long January 2015 $460 calls on Apple, short January 2015 $480 calls on Apple, short January 2015 $60 puts on Facebook, and long January 2015 $35 puts on Facebook. The Motley Fool recommends Apple, Facebook, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Facebook, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.