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Successor of Steve Jobs to the leadership of Apple has 28 billion dollars for acquisitions

Apple could start making acquisitionsApple could start making acquisitions, after it had spent for this purpose less than any of its competitors over the past ten years, and it has liquidity of $28 billion, writes Bloomberg.

Jobs, who transformed the company from a personal computers manufacturer, close to bankruptcy, into the largest technology company, used under a billion dollars for acquisitions in the last decade, launching instead its flagship products: iPod, iPhone and iPad.

The largest U.S. competitors of Apple have spent in the same period over $15 billion, on average, for purchases.

Microsoft lost a fifth of its market value after it has spent ten times more than Apple in purchases.

Apple has become a company with a market capitalization of $350 billion, after Jobs introduced products that have revolutionized the computer industry, music and mobile phones.

Jobs diagnosed with cancer eight years ago, handed over this week the operational management of the company to the new CEO, Tim Cook.

Acquisitions in the entertainment industry, patents, and information security, could help Apple defend against Google and Samsung, during Jobs absence, according to University of North Carolina and Stewart Capital.

“Clearly, the time of purchases will come. Jobs always developed the company from inside. If the lack of his vision will cause a vacuum of new products the acquisition model will come into play. Apple sits on a lot of money”, said Arvind Malhotra, Professor associate at University of North Carolina.
Steve Dowling, a spokesman for Apple declined to comment whether Jobs’ resignation from the position of CEO will encourage the company to make more acquisitions.

The top ten U.S. companies in technology sector paid over $140 billion for purchases in the last decade, according to the U.S. Commission for the exchange and securities.

Apple purchases represented less than 1% of this amount, with takeovers of 910 million dollars.

Even so, Apple’s market capitalization grew under the leadership of Jobs over $300 billion in the past ten years.

Jobs also doubled the net profit of Apple every two years since the last reported losses in 2001.

The market capitalization of Microsoft Windows operating system manufacturer, founded by Bill Gates, dropped 21% in the last decade, as the group spent more than $12 billion on acquisitions to support profit and share value.

The amount does not include $8.3 billion agreement in May to buy Skype Technologies, but not completed yet.