Apple (AAPL +1.25%) is one of the largest companies in the world. It had the highest market capitalization at $3.5 trillion in early 2025. It makes several top-selling technology products like the iPhone, Mac series, iPad, and Apple Watch. The company also has a growing services business, including its App Store, Apple TV+, and Apple Pay.
NASDAQ: AAPL
Key Data Points
Apple built many of its products and services by investing heavily in research and development (R&D). However, Apple buys other companies from time to time. It primarily buys start-ups to acquire talent (it famously reacquired the services of co-founder Steve Jobs) and technology rather than an operating business with salable products.
However, Apple has acquired several companies over the years that have been crucial to its product development. Here's a look at some of the notable companies it now owns and some that it could look to acquire in the future. Learning what Apple does and the companies it owns is a key aspect of investment research for those seeking to learn how to invest money in its stock.
What companies does Apple own?
Apple is one of the largest technology companies in the world. However, it is a relatively straightforward business. It has organized its operations around its two revenue sources:
- Products: Apple sells several branded products, including its iPhone, Mac series, iPad, Apple Watch, AirPods, Beats, Vision Pro, and Apple TV.
- Services: The company also has a growing services business, including advertising, AppleCare, cloud services, digital content (e.g., App Store, Apple Music, Apple TV+), and payment services (including Apple Card and Apple Pay).
Apple makes most of its money selling products ($294.9 billion, or 75%, of its $391 billion of revenue in fiscal 2024). However, its services are a meaningful profit center ($71.1 billion, or 34% of its total gross margin in 2024, thanks to a much higher gross margin of 74% versus 37% for products).
Although Apple has primarily built its business from the ground up over the years, it has acquired a few notable companies that have contributed to its growth, including:
1. NeXT Software
Apple bought NeXT Software in 1997 for $427 million. The company developed hardware and software programs, including an operating system. However, the deal was more about acquiring talent by bringing co-founder Steve Jobs back to Apple (he founded NeXT in 1985, shortly after his removal from Apple). Jobs would go on to revitalize Apple by spearheading the development of the iPhone.
2. Siri Inc.
Apple bought Siri in 2010 for an undisclosed amount. Apple has integrated Siri's voice-activated personal assistance technology into most of its products, enabling customers to do everyday tasks like sending a text message or searching for something on the internet through voice commands.
3. AuthenTec
The company bought mobile security company AuthenTec in 2012 for $356 million. AuthenTec developed fingerprint sensor technology. The purchase provided Apple with the sensor technology to improve the security of its products and opened the door for it to enter the mobile payments market.
4. Beats Music and Beats Electronics
Apple bought subscription streaming music service Beats Music and popular headphone, speaker, and audio software company Beats Electronics from co-founders Jimmy Iovine and Dr. Dre in 2014. At $3 billion, it was Apple's biggest-ever acquisition. The purchase bolstered the company's products business (Beats headphones) and services segment (Apple Music).
5. Shazam
Apple bought Shazam in 2018 for about $400 million. The music recognition startup enhanced the music identification system built into Siri and its Apple music platform.
6. Intel's smartphone modem business
Apple bought the majority of Intel's (INTC +0.31%) smartphone modem business in 2019 for $1 billion. The deal enabled the company to acquire patents for current and future wireless technology. It helped Apple expedite the development of future products.
7. Pixelmator
Apple bought the popular image editing app Pixelmator in 2024. The deal will enable Pixelmator to reach an even bigger audience.
What companies could Apple buy in the future?
Apple has bought a lot of companies over the years. However, most of its deals have been smaller purchases of talent and technology. Beats has been its biggest acquisition at $3 billion -- a drop in the bucket for the multitrillion-dollar technology titan.
The company has the financial firepower to acquire almost anything it would want to buy. Apple ended its fiscal fourth quarter of 2024 with $134.1 billion in cash, cash equivalents, and marketable securities against $106.6 billion in debt. The company is also a cash-flow machine. It produced $118.3 billion in operating cash flow during the last 12 months, returning $104.9 billion to shareholders through dividends and repurchases.
Despite its massive cash war chest, Apple will likely continue to focus on smaller deals. A recent focus has been on artificial intelligence (AI) startups, with the tech giant buying dozens over the past few years, including WaveOne, DarwinAI, and Datakalab. These deals provided it with the technology to help launch Apple Intelligence in 2024. The acquisition spree will likely continue, with most deals falling under the radar of investors.
However, CEO Tim Cook has said in the past that Apple looks at many opportunities, including large ones. While it hasn't found the right one yet, Cook hasn't ruled out a mega deal. With that in mind, here are some companies analysts have speculated it might buy if it opted to use its financial firepower on a major deal.
Related investing topics
The bottom line on companies Apple owns
Apple has bought many companies over the years. Most of its deals have been to acquire talent or technology, not products. It will likely continue with that strategy.
However, the company has the financial fortitude to make a needle-moving deal. It could consider many pathways, depending on what aspect of its business it wants to beef up through an acquisition. A deal could enhance shareholder value, especially if it accelerated Apple's growth rate by adding another high-margin service business to its ecosystem that could further enhance Apple's appeal as a great stock to buy and hold for the long term.
FAQs
About the Author
Matt DiLallo has positions in Apple, Intel, PayPal, Tesla, and Walt Disney and has the following options: short April 2025 $135 calls on Walt Disney, short February 2025 $275 calls on Apple, short February 2025 $77.50 calls on PayPal, and short March 2025 $20 puts on Intel. The Motley Fool has positions in and recommends Apple, Intel, PayPal, Peloton Interactive, Tesla, and Walt Disney. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal, short February 2025 $27 calls on Intel, and short March 2025 $85 calls on PayPal. The Motley Fool has a disclosure policy.
