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.