“Apple (AAPL) had quite a newsworthy week last week, reporting Q4 earnings and then holding a press conference in which they unveiled their newest laptop, an upgrade of the super-thin MacBook Air that uses flash memory in lieu of a traditional hard disk drive,” MagicDiligence writes for Seeking Alpha.
“On the company’s conference call, a common question came up: what is the company planning to do with its more than $51 billion in cash and investments?” MagicDiligence writes. “Here’s what CEO Steve Jobs said on the matter: ‘We strongly believe that one or more very strategic opportunities may come along that we’re in a unique position to take advantage of because of our strong cash position.'”
MagicDiligence writes, “The question this naturally begs is: what opportunities could Apple pursue that would be meaningful to the company? One company on the Magic Formula Investing screens came to mind: flash memory vendor SanDisk (SNDK).”
“The strategic advantages for Apple are two-fold. Apple’s ground-breaking designs in mobile phones, tablet computers, and now in notebook computers make flash memory the company’s single most important component,” MagicDiligence writes. “SanDisk’s product gross margins are generally in the 30-40% range, meaning that Apple could conceivably secure their most important component at a significantly lower cost than competitors. The company has already shown the strategy of entering new markets at aggressive prices to shut out competition. A lower cost structure for producing these evolving new computing form factors is a significant competitive advantage. The other reason is technology leadership. SanDisk is a flash pioneer and holds most of the important patents on the technology.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Should Apple buy SanDisk? No.
Should Apple buy me? Yes. Whippin’ good deal at a cool $1B.
Should Apple buy SanDisk? No.
Should Apple buy me? Yes. Whippin’ good deal at a cool $1B.
No …Buy Samsung!!!
No …Buy Samsung!!!
It would be a good idea if SanDisk already used the same memory chips as Apple.
It would be a good idea if SanDisk already used the same memory chips as Apple.
Yes! Yes! Apple should buy anything some dumb ass blogger says they should buy. Of course, because we all now how successful in business all dumb ass bloggers are.
There is a reason why Apple has enough cash to buy SanDisk and MagicDillegence is a blogger.
just my $0.02
Yes! Yes! Apple should buy anything some dumb ass blogger says they should buy. Of course, because we all now how successful in business all dumb ass bloggers are.
There is a reason why Apple has enough cash to buy SanDisk and MagicDillegence is a blogger.
just my $0.02
No, buy Samsung, I would like it all fit together like a glove.
No, buy Samsung, I would like it all fit together like a glove.
They should buy your mom haha. Losers.
They should buy your mom haha. Losers.
Before all this money burns a whole in the coporate pocket?
No! Apple does not need to get into the component manufacturing business. It’s feast of famine there. Apple does not have an expertise there.
A rumor could drive up the price of Sandisk just enough to make some big bucks though.
Before all this money burns a whole in the coporate pocket?
No! Apple does not need to get into the component manufacturing business. It’s feast of famine there. Apple does not have an expertise there.
A rumor could drive up the price of Sandisk just enough to make some big bucks though.
SanDisk, no. Vizio now, that would be interesting. Apple could purchase a LCD manufacturer and start building Apple TV into them.
SanDisk, no. Vizio now, that would be interesting. Apple could purchase a LCD manufacturer and start building Apple TV into them.
@Ray,
If you had bothered reading the article, you’ll see it wasn’t some dumbass blogger giving advice to Apple’s management, but rather a fairly insightful post that provided some speculation and opened the door to discussion on the subject.
Take it for what it is.
@Ray,
If you had bothered reading the article, you’ll see it wasn’t some dumbass blogger giving advice to Apple’s management, but rather a fairly insightful post that provided some speculation and opened the door to discussion on the subject.
Take it for what it is.
Apple isn’t in the components business. Even where it custom engineers a component, like the A4, someone else manufactures it. It’s called “sticking to the knitting” or sticking to what one does best.
Apple currently buys flash ram from Sandisk, but also from Samsung and Micron. Why buy one and piss off the other two? Competition is good, and Apple’s cash pile and purchase commitments guarantees industry best pricing. The same rule applies to those who suggest Apple buy Electronic Arts, which certainly would piss off other game developers while buying Apple nothing it wouldn’t otherwise have.
The other “Ray” is right. Only fools turn to dumb ass bloggers for financial guidance.
Apple isn’t in the components business. Even where it custom engineers a component, like the A4, someone else manufactures it. It’s called “sticking to the knitting” or sticking to what one does best.
Apple currently buys flash ram from Sandisk, but also from Samsung and Micron. Why buy one and piss off the other two? Competition is good, and Apple’s cash pile and purchase commitments guarantees industry best pricing. The same rule applies to those who suggest Apple buy Electronic Arts, which certainly would piss off other game developers while buying Apple nothing it wouldn’t otherwise have.
The other “Ray” is right. Only fools turn to dumb ass bloggers for financial guidance.
Shoot… I think it’s a great idea (buying SanDisk).. if it saves Apple money long term, why not?
Shoot… I think it’s a great idea (buying SanDisk).. if it saves Apple money long term, why not?
It might actually be time for Apple return to the in-house fabrication of their products that they abandoned so long ago. That my have been part of Obama’s talk with Steve. Repatriating the assembly plants and the jobs.
It might actually be time for Apple return to the in-house fabrication of their products that they abandoned so long ago. That my have been part of Obama’s talk with Steve. Repatriating the assembly plants and the jobs.
It’s obvious that they will buy LG. That way they would have a screen, battery, and TV manufacturer. Also, we would be able to control our home appliances with our iPhone.
iWash
iDry
iFreeze