It feels like if Apple wasn’t so wedded to their own legacy branding — more on that in a bit — they would rename this thing the iCamera.
MG Siegler https://500ish.com/apples-boar-on-the-floor-mistake-ad99ec8e494a
The case for Apple to buy Snap
After watching the iPhone 11 event, it’s clear that the iPhone’s most compelling innovation has been with the camera. iPhone is no longer a phone first but a camera.
This is where the similarities between Apple and Snap begin. Although the public perceives Snap as a social network, Snap fancies itself a camera company. Apple can make the claim they make the best smartphone camera in the world. Snap can make the claim they make the best product that leverages a camera in the world.
It’s undeniable that both are obsessed with cameras.
For the past couple of iPhone events, software features to utilize the new camera’s abilities have become a focal point of the event. In 2018, it was animojis and this year it was slofies.
These features are fun but they pale in comparison to what Snap has done.
- April 2011 – Snap makes the first popular ephemeral messaging platform. Snap also popularizes opening an app directly to the camera and vertical videos
- October 2013 – Snap launches Stories
- August 2014 – Snap launches geofilters
- January 2015 – Snap launches Lenses
- July 2016 – Snap acquires and debuts Bitmojis
- May 2019 – Snap launches gender swap lense
- September 2019 – Snap launches 3D camera effect
Evan and company have been busy. Over the last eight years, Evan has launched over six major hits that have been quickly copied by rivals. Evan has an uncanny intuition in how a person will interact with a camera.
Imitation is the sincerest form of flattery. Evan’s special talent for creating a product that takes advantage of the unique capabilities of a smartphone and its camera has been validated. Not only does Snapchat have over 203 million DAUs but many, most obviously being Instagram, have copied Snap’s features relentlessly.
Snap’s latest feature is a 3D camera which a user must have an iPhone X or later to leverage. This is an example of Evan not only taking advantage of the smartphone camera but quickly taking advantage of new features that are added to the camera
Privacy & Design
Apple and Snap share numerous core values. Apple prides itself deeply with being respectful and mindful about privacy, as does Snap.
Apple and Snap are design-first. Steve Jobs worked hand-in-hand with lead designer Jony Ivey for years. Likewise, Evan is known to work directly with the product designers at Snap to ensure the design is first-class.
Apple can afford it
Snap’s market cap sits at $23B as of this writing. Apple has over $200B cash on hand. Apple’s largest acquisition so far has been Beats Electronics in August 2014 for $3 billion. The ~ $25B price tag will be the biggest investment they’ve had but Apple can pull it off.
Apple has gone Hollywood
With the introduction of Apple TV+ and Apple entering the original content game, Apple has entered Hollywood in a big way. Snap is one of the largest players in the LA tech scene. Snap has accumulated incredible talent, have cut many content deals of their own and can be a major asset to Apple’s Hollywood aspirations.
Apple lacks a Product thought leader
With Jony Ivey leaving the company and Steve Jobs long gone, Apple no longer has a recognizable product thought leader. Although Tim Cook is a genius with logistics he is not the charismatic product leader and presenter that Apple lacks. This is a lofty claim, but Evan Spiegel is the perfect heir apparent to Steve Jobs.
Why it won’t work
There are many reasons Apple buying Snap may not work.
First, can it get done? Would the government, which has become wary of “big tech”, allow Apple to own a successful social network? Although this is a risk, with Facebook and Instagram’s domination, it would be hard for the government to make a case that this acquisition would lead to monopoly power.
Second, would Evan sell? Google offered Evan $30B in May 2016 and he said no. Although Evan fiercely wants to remain independent, a relationship with Apple would be hard for him to pass up. Apple is a better value fit for Evan and can accelerate his mission of Snap.
Third, Snap makes most of its revenue through ads. Although Apple sells ads such as placement in the App Store, Apple regularly slams companies whose primary revenue comes from targeted ads.
Apple could look at other business models for Snap. Perhaps Snap being tightly integrated with the iPhone will help Apple sell more iPhones and therefore Apple can avoid the Ad revenue. Or, perhaps this is an opportunity for Apple to diversify its revenue even more.
Bottom Line
Apple and Snap share the same values and could produce killers products together. Allowing Evan to have access to the camera months or years before it launches and letting him create a more integrated product is a dream. But that’s just the start. Giving Evan’s genius product mind access to Apple’s vast resources is a match made in heaven. What innovations could Evan add to iOS? What other areas of Apple could he make an impact?
Apple is perhaps the best business in the world. Apple has top of the line products, amazing logistics, and an incredible brand. But it lacks soul if you ask me. It’s easy to criticize Snap, but Snap has soul.