Creative software and macbooks are complement goods. i.e., demand for macbooks goes up when creative software gets cheaper, and vice versa.
This is a case where mergers are expected to make prices go down. As opposed for substitute goods, like macbooks and dell laptops, where a merger would probably make prices go up.
In both cases you have a prisoner's dilemma between vendors - with vendors producing substitute goods, the "defect" option is to lower your price. (This makes you more money, but costs the other vendor more money than you made.) For substitute goods, the "defect" option is to raise your price (this makes you more money, but costs the other vendor more money than you made.)
So mergers of vendors of substitute goods are usually bad, and tend to be blocked, because once merged the companies can coordinate to raise prices. But of complement goods are usually good, and tend to not be blocked, because once merged the companies can coordinate to lower prices.
All this to say that I think this move makes sense for apple regardless of whether their relationship with Adobe has soured.
If X consists of two complementary components, A and B, then if the price for either A or B goes down, then the total price for X goes down, demand for X goes up. Which means demand for A and B went up.
Even if the price of only one of A or B went down.
So if the price of A goes down, demand for B goes up.
If software prices go down, then demand for the hardware to run that software on goes up.
It’s a reframing of vertical integration, which does lead to lower prices or higher value assuming reasonable competition. You can also think of it as disintermediation (“cutting out the middleman”).
I mean theoretically that makes sense? If you get more value for something it increases the chance of buying it? But I also have no idea if this statement is true.
This is a case where mergers are expected to make prices go down. As opposed for substitute goods, like macbooks and dell laptops, where a merger would probably make prices go up.
In both cases you have a prisoner's dilemma between vendors - with vendors producing substitute goods, the "defect" option is to lower your price. (This makes you more money, but costs the other vendor more money than you made.) For substitute goods, the "defect" option is to raise your price (this makes you more money, but costs the other vendor more money than you made.)
So mergers of vendors of substitute goods are usually bad, and tend to be blocked, because once merged the companies can coordinate to raise prices. But of complement goods are usually good, and tend to not be blocked, because once merged the companies can coordinate to lower prices.
All this to say that I think this move makes sense for apple regardless of whether their relationship with Adobe has soured.