“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.
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.
no. sonos already poorly duplicates too much functionality. this guy has obviously not used airtunes and the apple wi-fi remote on the iPhone or iPod touch.
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).
@Citizen D… or just stop dreaming and buy a Mac mini.
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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.
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…
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.
I’m eating a burrito.
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.
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/
i never could get those damn airtunes white plugins working
then again with home sharing – i don’t need it anymore
viva apple !
At first glance, I thought it said Apple was buying Sony. Wha?!
The Airport Express works well. Have 3 cabled to receivers plus Time Capsule backing up old iBook. If you buy something and it isn’t working, just call Apple and they’ll walk you through the steps.
I had never done anything like this and am an electronic idiot. So we took iPhone pictures of the backs of all our systems, went to the nearest Apple Store and had one of their very patient nice employees tell us exactly what to plug in where. Everything was available at good prices right in the store. Not expensive!
Watched the super simple AirTunes tutorial, plug and play, really easy. Did have to call Apple but only took a couple minutes and everything has worked perfectly ever since.
Cloud 9 and beyond with AirTunes!
Apple should Intel. That could cause a dramatic shift and really damage Microsoft in the process. It would seal Dell’s death rattle and eliminate the cloners all in one massive sweep. Because the cloners would have to switch to AMD processors just as Dell and the rest would Apple would remain on Intel but all the spiff and Ad money that Intel pays out would dry up. All the companies that count on the money from intel to make a profit would have to increase their prices or go belly up. Use Intel and PA Semi to advance mobile processors, Graphics GPU’s and the like. Apple could squeeze Microsoft & PC Makers into niche market status almost over night.
aapl should buy the yankees because MLB has an iphone app
Huge swing and miss by this analyst, not new. See Cramer’s eureka discovery on aapl’s deferred revenue. They have no shame.
“and provide subscription services”
Whenever some anal-yst uses the word “subscription”, it’s OK to ignore them.
It’s worth $4 a share for Larry not talk about Apple, he’s a downer.
AirTunes only allows play one Track at a time.
While Sonos allows up to 32 individually controlled Zones with different Music & Volumesor linking Zones together.
Apple could enhance Apple TV – the Price difference to a Sonos Player is greater.
Or fit iTunes and the Express Station with a Firmware Update to make it work.
Apple should buy Klipsch.
Klipsch should buy Apple.
Touché!
Apple doesn’t need to buy Sonos.
They just need to update the Apple TV to include the same funtionality, but make it better, as they are famous for doing to seemingly every market they enter.
Why they haven’t done this already is a strange mystery to me.
In fact, take three shoud be redubbed, “Apple Home Theater,” or something similar, as it is about way more than just television.
@ The chicken s*%# with no name of it’s own…
I know Klipsch hasn’t the jack to do such a thing. Saying “Touché!” in that context makes you sound like a wanna be Clouseau.
@ burrito eater,
I wonder what ‘Camels Milk Drinker’ would suggest to wash that thing down with?
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As a Sonos user and an Itunes user, this marriage would be great. Sonos does what air tunes wants to do, but just can’t. The home networking is fantastic and the linux controller is a definite must (their app is nice but who wants to take the extra time launching the app, connecting to the server to do a quick volume adjustment). While Sonos can handle video (which I’m more interested in) they won’t because of the cluster-frack that the array of codecs presents their limited tech support (they’re too small a company to have to deal with baby boomers asking why their cell phone videos won’t work for hours a day). The apple hierarchy-while it would put some formats out in the cold- would be able to impose MP4s as the standard. And lets face it, the sonos player looks way better then the apple TV anyway.
Apple will out-Sonos Sonos.