Will The Real Snapchat Please Stand Up?: Will Apple Buy Snapchat (Part II)?

By: Neil S. Siskind

Much is being made across the financial media in recent days about Facebook’s Snapchat-clone products. Mark Zuckerberg has had his eyes on Snapchat for years and Facebook previously tendered a multi-billion dollar offer to buy Snap Inc., which was rejected. Ever since, Facebook (through Instagram) has been knocking-off Snapchat, feature by feature.

A popular and multi-billion dollar market cap social entertainment product or service behemoth like Facebook putting its resources behind knocking-off a product or service to make its own version into the market-leader cannot be stopped…..

UNLESS….

Unless another popular and multi-billion dollar market cap and cult-like social entertainment product or service behemoth develops its own such product or service…..or takes ownership of the real thing.

Does Facebook’s cloning of an existing product or service mean that the real thing is no longer valuable? Certainly not. But it does take money to break money. All Snapchat needs is equal marketing muscle. It’s that simple. And then it could be curtains for Facebook in the space.

Apple products are in our hands at all times. They are also in our laps and on our desks, and even on our wrists. We don’t even have to sign in to anything, as with Facebook and Instagram. The products are just “there”. Without their respective Apple product, many people (i.e. users of iPhones, iPads, Apple Watches, and Macs) can’t even get to Facebook and Instagram (i.e. a computer or a smartphone is necessary in order to get to the Facebook and Instagram websites). If Apple were to acquire Snap Inc., Apple’s products’ interfaces could feature Snapchat in prominent and ubiquitous ways on numerous pieces of hardware that infiltrate our everyday lives, in ways that no Snapchat clone could….well….clone…. without 3rd party agreements. Apple could position Snapchat on Apple’s hardware devices and software platforms so that Snapchat is the default mobile video communications option for Apple customers.

Apple can have the real thing, make it bigger and better than it is, and use its own marketing muscle and hardware devices to solidify Snapchat as the king of its category “for good”. With Snapchat ownership, Apple could exclusively advertise its products through Snapchat, further building the Apple brand with young users, and Apple could opt to derive additional revenues by advertising other companies’ products that don’t compete in Apple’s categories. By owning Snapchat and developing special features that are only accessible through Apple products, Apple could make Apple products even more desirable. Apple could even consider making Snapchat exclusive to the Apple ecosystem. Since so many young people are already loyal to the iPhone, this could be a major event for Apple, to solidify users for life, as well as attract future users to Apple so that they won’t be excluded from their friends’ and associates’ digital interactions. The more popular and in-demand is Apple’s content, especially its exclusive and proprietary content, the more attractive its ecosystem and devices would be to consumers.

An Apple buy of Snap Inc. is a market sell of Facebook.

How would Facebook like them Apples?

_ _ _ _ _ _

About the Author

Neil Siskind is: President of The Siskind Law Firm, focused on product investments, trademark licensing, product distribution, and real estate; Founder & Chairman of The Fatherhood Assignment™, a think tank and advocate for children with absentee fathers; Founder of the global charity marketing initiative, Caring is Free®; Founder of National Fatherhood Day™; Owner & Conservator of The Neil S. Siskind Nature Preserve, over 7 acres of conserved waterfront land along New York’s majestic Hudson River; and Author of The Complete Guide To The Ways To Manufacture & Sell Your Products.

Other Recent Articles by Neil S. Siskind:

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