“Apple needs to come up with revenue streams beyond iPhones during 2016, as investors believe that any company involved with cell phones will see a downturn, TheStreet‘s Jim Cramer said on CNBC’s Squawk on the Street [on Monday],” Rachel Graf reports for TheStreet.
“Shareholders don’t own Apple stock for an ‘upside surprise,’ but rather because they believe it’s an inexpensive stock that will be able to come up with a better revenue stream, Cramer contended,” Graf reports. “He noted that Apple can ‘prove it’s more than just cell phones” by either buying or producing a second revenue stream.”
MacDailyNews Take: Apple doesn’t make cell phones. They make computers in all sizes from pocketable on up. Some of them come with apps pre-installed that allow users to make voice calls via cellular networks.
“A possible acquisition for Apple CEO Tim Cook should be Harman, Cramer argued. The manufacturer of professional audio, video, lighting and control systems is ‘deeply embedded’ in the BMW, Lexus and Mercedes families,” Graf reports. “Apple should acquire Harman in time to insert its technology into cars worth $100,000, Cramer explained.”
“The company needs to own cars’ Internet of Things to pair with its mobile phones,” Graf reports. “‘Look, it isn’t too much to ask for Apple to stop its endless buyback and increase its exposure to the other mobile force – autos. It must be the brains of your car… all cars. Right now, that’s Harman. Why not just buy them for $9 billion? Shareholders won’t even notice the lack of cash, but the analysts would be forced to revise their numbers to include recurring revenue streams from different auto companies as they come on stream,'” Cramer stated.”
Read more in the full article here.
MacDailyNews Take: Buying Harmon would be Apple’s biggest purchase in history, times three. Integrating a company with 28,000 employees is hardly a trivial matter. Apple needs more focus on their existing products and services (to say nothing of “secret” projects already underway), not more distractions.
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Jim Cramer: Apple should buy Harman, Pandora, Fitbit and Verifone – December 23, 2015