Yesterday, Apple confirmed that they purchased Intrinsity, a small company in Austin, TX known for their very fast performing mobile device chips. The NYTimes reports that the move helps Apple’s products, such as the iPad, hold a ~50% edge over competitors in terms of processing speed since the Intrinsity designed chip runs at about 1,000 megahertz vs the industry standard 650. In light of this story, I have to ask…

Given that the current economic climate is a buyer’s market for acquisitions, supply chain risk is high on the agenda of companies, and collaboration with suppliers to innovate products is a growing practice among leading companies, are we entering a phase where we’ll see more acquisition of strategic suppliers?

Acquisitions are likely to rise in the coming months as companies look to snatch up bargains in advance of an improving economy. So, perhaps risk management will play a more prominent role in who they select as acquisition targets. In a case like Apple’s, they certainly don’t want to wait in line with their competitors for product if capacity becomes constrained. So why not ensure that they get ultimate control over a key component, especially one which differentiates them in the marketplace?

And in terms of differentiators, Apple is known to collaborate very effectively with suppliers (despite keeping them in the dark about how their components will ultimately be used). Why not ensure that they are the only ones with access to some of their best and brightest supply chain minds? If Apple is the company pushing suppliers like Intrinsity - through their high specs and assured volume if the supplier can deliver - why let competitors benefit from the innovation?

What are your thoughts? Has your company considered acquisitions as a form of risk management or innovation? Share your tales below (and given the nature of this topic, leave comments anonymously if you must).

Justin Fogarty is Managing Editor of Supply Excellence and community manager of Ariba Exchange. For any questions or feedback on the blog or its contributors, Justin can be reached at jfogarty[at]ariba.com.