Apple Should Buy Skype

Sunday, February 22, 2009

I know. Enough already with the all of the predictions over the fate of Skype and who might acquire them, right?

But give me just five minutes of your time. I want to explain to you why I think Apple should buy Skype.

Let’s take a look:

  • Apple has the cash. Apple is sitting on $18 billion in cash. Spending $1 or $2 billion on Skype (eBay’s reported asking price) is a drop-in-the-bucket for them.
  • Apple owns distribution channels. Apple has all of the necessary sales and marketing channels to GROW Skype’s usage and bottom line. They don’t have to find or create – all they need to do is leverage!
  • Apple has the hardware, but understands software. Apple has an entire line of products that could run all or portions of the Skype technology. They can GROW Skype’s usage and bottom line by shipping Skype pre-installed on their desktops, laptops, cellphones and the iPod Touch. Oh and they have one of the best marketing department’s ever, so they can reach “mainstream” customers to drive adoption. Don’t forget about their retail outlets either, where Apple can take the time to explain Skype’s value to consumers and prosumers.
  • Apple loves tying their hardware to their software. The iPod is tied to iTunes. The iPhone is also tied to iTunes, but why is a cell phone tied to media software? Would it not make more sense to tie a cell phone to a communications software? I think so. Plus…
  • Apple’s got clout. And has shown it with cellular carriers (look what they got out of AT&T). They also have enough money and marketing might to ship an iPhone or iPod Touch with Skype as the native communications software – allowing iPhone and Skype users to have native VoWiFi and Vo3G capabilities, in addition to all of the other things that can be done with Skype.  If any company could push the hand of cellular carriers and change user habits, it is Apple.
  • All signs point mobile as the future of communications. When it’s all said and done, the future of communications is mobile and that is where Skype’s true promise lies. Who want’s to be tied to their computer or desktop phone? I don’t. Skype going to a fixed line telephony (or VoIP) company, a software company or a gorilla of a hardware player would be a waste.

Well, my five minutes are up. What do you think? Skype to Apple, or to someone else?

This post was from Garrett Smith’s VoIP Insights blog. Don’t miss another one of Garrett’s posts. Subscribe for FREE here.

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