The Potential Value of Apple Buying Snapchat

Apple is dominating the mobile phone market. Recently, the success of Apple Music has proved they can disrupt other music streaming services such as Spotify and Pandora. Snapchat would be a great fit for Apple to finally expand into social media. Apple needs an MVP on the front of social. Apple Music is only meant to engage with fans of music. What about Apple Sports? Why has Apple not developed that? However, social media is currently dominated by Facebook (Instagram) and Twitter (Vine). The difference between the aforementioned companies and Snapchat, is that Snapchat allows users to have a faster reaction to content, utilizing both video and chat, without having to respond publicly. According to, Snapchat has north of 200M monthly active users and 100M daily active users, with over 400M snaps sent daily. Direct message on Instagram and Twitter just feels less appealing and engaging to use.

Going forward, generating a revenue platform will continue to be at Snapchat’s forefront in 2016. I could see Snapchat build revenue in two ways: create a sub-platform for advertising based on geolocation and push Snapcash into a more understandable direction (connect Snapcash more directly with bank accounts and have better incentives for users who send/receive Snapcash). If Apple was to purchase Snapchat, $4B would be the most appropriate purchasing price in my opinion.

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