[cosus]

(Correct me if I'm in error. )

Apple is huge and it's growing. It has plenty of cash and has been a trend setter consistently for 14 years. It's claims to be mainly a hardware company, but has in many if not most eyes superior software. No longer is are graphics its bread and butter, but rather it's the bonus. Affordable desktops, innovative laptops, doesn't jump on bandwagons, but time and time again has proven its foresight. What is next?

If AAPL were to purchase a company to augment areas it lacks in vertical integration or features it they don't provide in its ecosystem to a satisfactory degree, what company would augment them best?

IMO I feel that Google, ARM or AMD/Ati would be most beneficial.

1) Google: With search primarily and ideally closer integration with iOS or 10.x (of the top of my head a simplified web based OS for on the go while without your Apple device, better suite of online productivity apps, time machine online like mozy or carbonite considering Google's capacity and/or spotlight online. Android is open, free to edit, spin off, etc., in addition to the fact the iPhone and iOS was never considered a monopoly, antitrust issues seems negligible.

2) ARM: Keeping with intellectual property over manufacturing, Apple can further produce better processors from a proven company for its phone & tablet devices. Further vertical integration without the need to sell to competitors considering competition within this market does exist.

3) AMD/Ati: A two in one deal. AMD, A company that use to be infamous for products missing deadlines and Apple, a company famous for announcing nothing early seem to be a match made in heaven. Apple potentially making CPUs and GPUs across its entire lineup further improve efficiency, intellectual property and exclusivity with ideally integrated AMD/Ati devices across mobile platforms and remain windows compatible can be lucrative.

Then again, I often talk out of my ass. Still if AAPL wanted to, hypothetically, AAPL, on paper*, can buy out MSFT or both INTC & GOOG. Cash and the leveraged buyout.

*By market capitalization.

[torifile]

They shouldn't buy anyone. They don't need anyone. They should continue to make strategic investments in companies they need to produce their hardware. Squeezing out the competition from those markets/price points. They have a lot of cash but I'd prefer they work on building production ramps than buying some company just because they can.

[drewprops]

What Tori said.
Calculated conservative growth is smart growth.

And Apple buying Google? What are they putting in the tacos out there?

...

[Wrao]

I think Apple will continue to try and acquire patents, but buying large companies outright doesn't really fit where they are at.

I kind of liked the rumor of them buying Barnes & Noble, not so much because it makes any sense for Apple to 'take on' 600+ gigantic stores(it doesn't) but because it does kind of make sense for Apple to look to expand their retail presence beyond indoor malls. But any company like that, that comes complete with thousands of employees, debt, unwanted assets and other baggage just seems like an impediment to what Apple is trying to do.

As for buying a company like ARM or AMD. This seems a lot more possible to me, I think Apple wouldn't mind having a system, handheld or otherwise, that used "apple" chips for both the CPU and the GPU. However, the anticompetitive concerns here are pretty large and also their relationship with Intel is as solid as they come(at least from the outside looking in) and the perks they have gotten from them rival anything they could do on their own through ARM or AMD.

[Eugene]

Originally Posted by Wrao I kind of liked the rumor of them buying Barnes & Noble, not so much because it makes any sense for Apple to 'take on' 600+ gigantic stores(it doesn't) but because it does kind of make sense for Apple to look to expand their retail presence beyond indoor malls. But any company like that, that comes complete with thousands of employees, debt, unwanted assets and other baggage just seems like an impediment to what Apple is trying to do.

Um...most of the Apple Stores here aren't in mall structures. Apple Stores are placed where foot traffic is good enough. Maybe that only means malls where you are, but that means Union Square in SF or Burlingame Avenue (Burlingame) and University Avenue (Palo Alto) down the peninsula. Plenty more examples in well populated areas.

Apple is not a bargain brand or an outlet, so using current Barnes & Noble locations wouldn't make sense.

Apple is looking to buy brands and technology that make sense for them. The jury is out on whether they are serious enough about AppleTV to make an entry into buying a media property (like the Sony or Hulu rumors.) Sony studios would make more sense than Hulu, which is just a delivery service.

As for buying a company like ARM or AMD. This seems a lot more possible to me, I think Apple wouldn't mind having a system, handheld or otherwise, that used "apple" chips for both the CPU and the GPU. However, the anticompetitive concerns here are pretty large and also their relationship with Intel is as solid as they come(at least from the outside looking in) and the perks they have gotten from them rival anything they could do on their own through ARM or AMD.

They have no need to buy either of these companies because the best situation for them is heavy competition between Intel/AMD/ARM/anyone.

[cosus]

Originally Posted by drewprops What Tori said. Calculated conservative growth is smart growth. And Apple buying Google? What are they putting in the tacos out there? ...

Apple has $26 billion in cash (note: $10 billion less than GOOG) and is roughly 100% larger* than Google.
NationsBank bought Bank of America, a much larger bank, RJR Nabisco is another example of small buying large.

[PB PM]

Why is it that every two or three months a new thread starts saying "Apple has bah blah blah amount of cash, they should buy this company or that company?" I don't get it, they don't need to buy any campany, at least not right now.

[torifile]

Listen to this. I wish they put this podcast out more often. Dediu is a smart guy. Also, if you're not already, read www.asymco.com if you've got any interest in AAPL.

[cosus]

Originally Posted by PB PM Why is it that every two or three months a new thread starts saying "Apple has bah blah blah amount of cash, they should buy this company or that company?" I don't get it, they don't need to buy any campany, at least not right now.

Generally companies in excess Of cash either post dividends or buy to augment. My point wasn't the cash issue, but a stock issue and LBO. two entirely different concepts. What Apple can buy with cash is less than what they can buy with stock. Considering the strength of their shares, the dwindling dollar, apple should do something.

Originally Posted by torifile Listen to this. I wish they put this podcast out more often. Dediu is a smart guy. Also, if you're not already, read www.asymco.com if you've got any interest in AAPL.

Apple might make the most in terms of profit, but what about unit sales?

[chucker]

Originally Posted by Wrao their relationship with Intel is as solid as they come(at least from the outside looking in)

I doubt Intel is too pleased with the A4 and A5 chips. If it were up to them, iOS would run on Intel Atom processors, not ARM.

Originally Posted by cosus Apple might make the most in terms of profit, but what about unit sales?

Also number 1, at 28% market share.

[Eugene]

Originally Posted by cosus Apple has $26 billion in cash (note: $10 billion less than GOOG) and is roughly 100% larger* than Google. NationsBank bought Bank of America, a much larger bank, RJR Nabisco is another example of small buying large.

Apple has $76B in cash. I'm sure Apple has been thinking plenty on how to spend it...the bottom line is that outside of investing in their suppliers, there's almost nothing out there. I personally think that there is money to be made in creative properties while everyone else fights over how deliver them to your devices. It would give Apple leverage over other media giants like Comcast and Time-Warner as well.