This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Apple Doesn't Need Nest

NEW YORK (TheStreet) --

Common and, no doubt, good question after news that Google (GOOG) picked up Nest for $3.2 billion.

I'm sure rumors will surface (if they haven't already) that Apple (AAPL) was in the running for Nest.

Maybe. Maybe not. But, either way, I'm glad they didn't get Nest. And I reckon they didn't want the company that badly, if at all, anyway.

The moment Apple starts making large-scale acquisitions is the moment I start to (re)worry that Timothy D. Cook has run out of ideas. That he doesn't have a way forward at Apple.

Spending $3.2 billion on another company would be incredibly out of character for Apple. That's why I just don't see the sense in calls for Apple to pick up Yahoo! (YHOO), Netflix (NFLX) or any entity bigger than a small startup.

Remember Apple Will Disrupt And Destroy When Its Ready. It will do so on its own terms. And it will be homegrown, so to speak.

Apple hasn't come out with a brand new product in quite some time now. But that doesn't mean it has stopped innovating. We have seen one flavor of innovation with the best in breed, way better than what came before it iPad Air. And there's likely another, more familiar and exciting type of innovation going on at Apple behind the scenes. Just because we don't know what it is doesn't mean it doesn't exist.

In fact, prior to the announcement that Google took out Nest I was working on an article hypothesizing that what Apple might do next, via a television set most likely, but maybe a wearable device (though I hope not on the latter), is move towards some sort of whole-home, whole-life solution. I'll flesh that thinking out at another time, but, as time goes by, Apple doesn't stand still. It's moving -- right now -- on something. 

So, why would Apple need Nest then?

While it's perfectly alright to make big purchases to elevate your game or take the next step in your evolution -- the way Google does (see also Waze and YouTube) -- that's just not the Apple way. Apple is perfectly capable of building whatever needs to be built to successfully execute its roadmap.

The fact that Apple has been so quiet -- at least more quiet than some critics would like -- and hasn't made any major acquisitions as of late actually gives me more confidence than I would have if Cook was out running his mouth and blowing Apple's cash hoard. This tells me something's afoot. And when it's unleashed, it's going to, once again, change the game.

Apple is not Microsoft (MSFT). They're not scrambling after a mix of having been out-innovated and asleep at the wheel. Quite the contrary -- Apple might actually be in greater control of its destiny and the spaces its dominates than it ever has been.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist for TheStreet. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,082.65 +3.08 0.02%
S&P 500 2,000.64 +3.90 0.20%
NASDAQ 4,573.9180 +16.2230 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs