African Arts and Crafts

African Arts and Crafts Gallery What’s the deal with Apple’s $1bn sale of AfriCraft?

What’s the deal with Apple’s $1bn sale of AfriCraft?



Apple has announced it will sell its e-commerce business to e-shops, a move that could create a $1 billion sale of the retail giant’s retail operations.

The move will mark the second sale of an Apple company’s business since the US company bought Beats Electronics for $3.6bn in 2018.

Apple is expected to make the purchase in the next few months, with its shares trading up 3.2 per cent on the New York Stock Exchange.

The news came as Apple confirmed it will buy up to 25 per cent of rival Amazon.com, bringing its share of the online retail market to $50 billion.

The announcement of the deal came hours after the company reported better-than-expected quarterly sales, with net sales of $10.2 billion.

In the third quarter, Apple posted its strongest year-on-year earnings in seven years, netting $8.3 billion, despite a series of costly price cuts to some of its pricier devices.

The company also said it was forecasting a higher than expected fourth quarter profit, but warned the company’s future could be threatened if the US economy struggles.

Apple also announced it was extending the sale of some of the company-owned iPhones to the public.

The company’s share price jumped 4 per cent.

Apple’s chief financial officer, Luca Maestri, said the sale would allow the company to sell more iPhones and that the sale will be completed in the second half of 2019.

Apple said it will make the sale through a transaction called the Affinity Program, which would make the transaction contingent on a company’s commitment to pay back loans.

In an interview with Bloomberg Television, Maestrei said that while the deal was not an acquisition, it did enable the company “to accelerate its transformation” into a more integrated technology and services company.

Apple has already been making some major acquisitions of the last couple of years, including the purchase of Beats Electronics in 2018 for $2.4 billion and the acquisition of Beats Music in 2019 for $4.5 billion.

Maestri said the company was “optimistic” that the purchase would lead to increased profitability.

“We see the acquisition as a step forward to the next phase of the transformation, and we’re excited about how it will impact our future growth and revenue opportunities,” Maestrisi said.

TopBack to Top