Why Apple bought Anobit

“Apple (AAPL) finally confirmed earlier reports that it bought Israeli semiconductor startup Anobit Technologies. Apple did not confirm the price, which is believed to be between $400 million and $500 million,” Erick Schonfeld reports for TechCrunch.

“Apple bought Anobit for two reasons: its flash memory controllers are a key component of all Apple’s leading products (from iPads and iPhones to MacBook Airs), and in one fell swoop it just added a large team of chip engineers to payroll,” Schonfeld reports. “Do not underestimate how important those chip engineers are. Apple had at least 1,000 chip engineers. Roughly 160 of Anobit’s 200 employees are also engineers, thus they instantly represent more than 10 percent of the total number of chip engineers at Apple.”

Schonfeld writes, “In computers, whether PCs or post-PCs, everything starts with the chips. By designing its own chips and building out a world-class chip engineering team, Apple is investing in its ability to keep creating more post-PC devices for years to come.”

Read more in the full article here.

Related articles:
Apple confirms purchase of Israel-based Flash-memory part maker Anobit – January 10, 2012
Apple’s purchase of Anobit would give it a leg up on rivals, allow Apple to use the least costly NAND flash – December 27, 2011
Anobit acquisition keeps Apple ahead in flash memory – December 22, 2011
Apple reportedly closes Anobit deal for $400-$500 million – December 20, 2011
Inside Anobit: Why Apple is investing in flash RAM technology – December 15, 2011
Apple to build semiconductor R&D center in Israel, sources say – December 14, 2011
Magical technology: Why Apple is buying Anobit – December 14, 2011
Apple moves to take over flash memory industry from Samsung – December 13, 2011
Analysts see competitive advantages for Apple in Anobit buy – December 13, 2011
Apple reportedly buying Israeli flash memory company Anobit for upwards of $500 million – December 13, 2011

9 Comments

  1. Apple has now gained another advantage by buying Anobit, keeping down hardware costs. Also, Apple now has access to unique technology that possibly no other competitor has.

  2. Samsung can’t copy Apple’s products if they can’t source the components.

    I expect to see more developments like this. Apple already do their own hardware and software design and tightly integrate them, now they can take it further with chip design too. PA semi and Anobit are both leaders in designing cutting-edge chips that are powerful, but frugal in terms of power consumption. That’s a combination which makes their expertise particularly valuable to Apple.

    1. Fact, Samsung will continue to copy Apple’s products.
      Fact, Samsung will continue to source all the components they need.

      Fact, what Samsung won’t do is, implement Apple’s (Anobit’s) memory controller designs into future products.

      1. G4 Dualie:

        It is technically IMPOSSIBLE for a future event to be a FACT. It is your prediction only. If recent past events are indicative of the future, then yous may be an accurate prediction. But please stop with the flagrant mis-label of the word Fact. Millions of internet readers are confused enough already.

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