“Amazon.Com Inc is in advanced talks to buy the supplier of chips for its Kindle tablet computer, Israeli financial newspaper Calcalist reported on Monday, in what could mark a step in the company’s ambitions in the smartphone sector,” Tova Cohen and Tarmo Virki report for Reuters.
“The report said any deal for the smartphone chip business of Texas Instruments Inc (TI) would probably be worth billions of dollars and could make Amazon a direct rival to Apple Inc and Samsung Electronics Co Ltd, which also design their own chips,” Cohen and Virki report. “‘With the trend towards more vertical integration, led by Apple, speculation that Amazon is interested in TI’s chipset arm is unsurprising,’ said Ben Wood, head of research at British wireless consultancy CCS Insight.”
Cohen and Virki report, “But some analysts questioned whether it would make sense for Amazon to spend billions on the business when many smaller and independent smartphone chip makers are reporting steep losses. TI has flagged its plans to exit the business. Gartner analyst Carolina Milanesi said she doubted whether Amazon wants to ‘become that intimately involved with hardware.'”
Read more in the full article here.
MacDailyNews Take: Even Bezos isn’t that self-delusional – or is he?
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
With a massively inflated stock price like AMZN, they should buy as many “real” companies as they can.
+1
Didn’t Amazon profit 7 million last year? Gross sales are great, net profit isn’t.
Amazon P/E of 250
Bezos has no idea what he is getting into if he buys TI. That’s a worse fit than Google buying Motorola. Let’s see: Amazon admits it makes no profit on Kindle sales, which comes after admissions that it sells Kindle (at least Fire models) as a loss leader, and likely means Amazon still loses money on each Kindle sold. So spending billions on a chipmaker would somehow cure this problem? Wouldn’t it just be easier to keep losing money until you get to the billions you would have spent on TI in the hopes that someone will subscribe to Amazon Prime?
Samsung Electronics Co Ltd, which also design their own chips,”
Samsung “design their own chips?? I don’t think so, they use the standard ARM design.
Amazon wouldn’t be the first successful company that didn’t know when to stop.
Apple should be looking at TI. The opportunity to be at least partly “Made in America” will be an advantage that I wouldn’t want anyone to have over Apple. And Apple needs more non-Samsung suppliers anyway.
All Amazon does is copy Apple. And they’re the cheapest imitation of it. Apple launches an App Store, then Amazon does. Apple launches multi-touch tablets, then Amazon does. Apple integrates core competencies like hardware design and creation into building its products, then Amazon starts doing it. “Trying to do it” more accurately. Except Bezos just imitates and so much is lost in the translation.
Bezos is just an insane Libertarian asshole who owns an online junk retailer. No sense of style or taste. Cheap, crap products and a Website that looks like Ebay from 1998.
This won’t end well.
yeah, buy Texas Instrument then sell it on Amazon Marketplace
free shipping no sales tax same day delivery.
LOL…
Poor Amazon. Have no idea what they are doing.
Well, they know one thing. How to not make money. They should take a look at Apple.