WE Technology, Strategy & Business

WE Technology, Strategy & Business is a part of the greater Weekend Economist, which is an interactive space aimed at being both a source of information and a place for discussion on developing stories related to Economics, Business, Technology, Finance and Geo-politics. Please feel free to post your comments and/or send us your own articles for publication by contacting us at weekendeconomist@gmail.com. Also, if there is a relevant topic you would like us to write about, please ask and we will be glad to meet your request. Finally, our other two blogs, the flagship Weekend Economist "Quaerere Verum" and The World Beyond The Weekend Economist, might be of interest as well. We hope you enjoy our site(s), Benjamin Valk & Jeroen van Bommel.

Thursday, August 9, 2007

Why Apple Should Buy Facebook

Apple has positioned itself well in the upscale niche market of high end consumer electronics. Practically everything that Steve Jobs touches turns to gold. In terms of strategy taking over Facebook is not only bold, but beautiful as well.

First of all, facebook user base, is one of the main target groups for Apple's main product lines. College students, highschool students, and young profesionals are important driving forces behind Apple's growth in both consumer and computer products. Most importantly Facebook allows an important outlet for integrating its computer base with a strong online community.

Instant photosyncing, integrated address book services and great iChat connectivity. Furthermore, the iPhone offers even greater hardware/internet/connectivity integration which in combination with facebook services can turn an Apple/Facebook combination into gold.
Internationally, Facebook integration could drastically enhance the sales base of the iTunes store.The cash flows coming from advertising would also add another value driver to Apple's general business framework.

Facebook has made it clear that it's not in the business to be taken over. It has taken a rather strong willed and independent approach. But as Facebook becomes bigger and complex it could use the help from Apple in terms of usability and user interface. So even if it resists the future pressure from Google, Apple, Yahoo or another rogue party, it is going to need big friends in the big league. Zuckerberg, young as he may be, seems to have a clear vision where he wants to go, and it doesn't seem he's easily swayed by billion dollar offers. Partnership or buyout, whoever buys Facebook shurely needs deep pockets.