Analyst: Apple should consider buying Sonos

“Apple should ponder acquiring Sonos in a move to tackle the home audio networking market, a small niche with big potential, according to an analyst,” Larry Dignan blogs for ZDNet.

“That’s the takeaway from a research note penned by William Blair analyst Ralph Schackart,” Dignan writes. “The report makes a lot of sense.”

The logic goes like this:
• Apple should enter the home audio networking market to extend iTunes and provide subscription services;
• Sonos would round out Apple’s lineup;
• There’s a lot of headroom in the home audio networking market.

Dignan reports, “Sonos is privately held. The company’s wireless networking gear distributes iTunes and other services like Pandora and Sirius XM throughout your home. If Apple bought Sonos, Schackart reckons that the market is worth an additional $2 a share in earnings to the company.”

Full article here.

34 Comments

  1. I have another argument following Larry Dignan’s logic chain.

    ZDNet should hire Michael Vick as a writer, replacing Dignan. The report makes a lot of sense. The logic goes like this:

    – ZDNet should enter the sports news market to extend its readership and offer sports services.
    – Michael Vick would round out ZDNet’s writing lineup.
    – There’s a lot of headroom in the sports news market.

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  2. This is just crazy talk.

    Apple already offers the same functionality as Sonos with a Mac, AirTunes and iPhone/Touch as the remote.

    If they really wanted to make their solution cheaper, they could replace the Mac with an (software) updated Apple TV (to allow it to be a media server).

  3. I SO agree with HMCIV. I’m willing to bet that the analysts pushing this idea have skin in the game, and would gain financially from it. And Dignan is stupid enough to either be a shill or take the bait. It’s like that scumwad Ken Rosenthal of Fox Sports acting as a shill for big baseball sports agents. They spoon feed Rosenthal a story about some player they want to either get traded or acquire. In return for getting a scoop, Rosenthal will be a whore for any general manager or agent who will give him a rumor to spread.

    I am sick of “Apple should buy this” and “Apple should buy that” stories. They’re garbage. Apple rarely buys companies, and if so, they acquisitions are relatively small, usually to possess a technology and patent portfolio that extends what they’re already doing. Truth be told, the analysts simply want to separate Apple from its cash, and profit from it.

    My reaction would be unprintable.

  4. I posted the same thing a few years ago, but that was before airtunes. Bought Sonos in april 2006, but at least I now have nice Apple-looking amplifiers in my rooms. The internet radio function on sonos is good. These analysts never cease to amaze me, so late to the game…

  5. I’m loving AirTunes !!! Whole house is rocking n reverberating with awesome kirtan / mantra / playlist spilling out heaven from all speakers. So inexpensive and easy, and such superb quality of sound.

    AirTunes is the BEST invention since sliced bread!

    Busy importing 100s of CDs into iTunes, soon to convert cassettes — ooooo this is too excellent for words. Music as you’ve never imagined, filling every cell, every atom, raising the roof.

  6. I thought I might be the first to point out that Apple is already in the audio networking business, but others beat me to it.

    These two guys (the “analyst” and the “journalist” that repeated it) are the reason I do my own independent investment research. The “experts” are dumber than a stump.

  7. Another issue could complicate this idea:

    According to others…Back in 1984, Apple dubbed the “Mac” a “Macintosh,” deliberately misspelling “McIntosh” (a variety of apples), to avoid conflict with McIntosh Labs, the legendary audio equipment manufacturer of Binghamton, New York. Apple later entered into a license agreement with McIntosh Labs which originally ran through 1997, to allow Apple to use the Macintosh name in connection with computer products.

    Although Apple has registered US Trademark No. 1460661 for MACINTOSH (in relation to computers) since 1987, and the original ten-year McIntosh Labs licence is long expired, some of Apple’s more recent documentation still reflects this interesting bit of trademark history. See for example their MacApp Application Framework Software license which, in clause 3B, states that:

    Where referencing “Macintosh” you shall state that “Macintosh” is a trademark of McIntosh Laboratory, Inc., licensed to Apple Computer, Inc., and is being used with express permission of its owner.”

    I thought this agreement prevented Apple from entering the audio hardware business.

    http://www.gelsing.ca/blog/?p=24
    http://www.mcintoshlabs.com/

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