Companies such as Apple Inc. need to decide whether to make or buy products or...

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Finance

Companies such as Apple Inc. need to decide whether to make or buy products or services on a regular basis. For example, initially Apple bought map data for use on its iPhones from Alphabet Inc. (Google). Alphabet, however began marketing its own line of Android smartphones with voice-directed, turn-by-turn navigation, a feature that Alphabet would not sell to others, including Apple. As a result, Apple decided to make its own mapping app and stopped contracting with Alphabet. 1) What accounting factors would Apple Inc. have considered in deciding to make its own mapping app rather than buy these services from Alphabet?

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