Apple could buy AMD? Speculation on a possible announcement at MWSF

[blashphemy]

This is pure speculation.

AMD right now is in a position that makes it prone to be bought out. It's stock price is low, among other things (I'm not really a business/high finance kinda guy, just read the article linked below). So anyways, if Apple bought AMD out, which it could with the $15 billion rotting in its coffers, it could do a lot of stuff to help:

1) Optimize performance in OS X
2) Optimize heat etc. in its computer designs
3) Manufacture everything in a Mac except for the sound/memory/hard drive.

Could be a good "One more thing" in January. What do you think?

http://www.tgdaily.com/content/view/35289/118/

 

[EricNau]

I just don't see any potential. Apple is doing fine using intel chips and having 15 billion in their pockets. If they were to buy AMD, they wouldn't be accomplishing much.

 

[Sun Baked]

I don't think Apple wants to take on chip production, they just got out of a huge CPU/chipset R&D headache by switching away from IBM/Freescale.

Plus, this would likely mean them paying 100% for chipset development again and/or sharing platforms they develop with others just to see themselves undercut on prices -- neither of which has been happy happy joy joy times for Apple.

If Apple buys tech, it'll be for patents and companies they can absorb and re-release under the Apple SW/HW brand name -- or plain shut down and stick the patents in the hip pocket. And AMD is too big to do either with without anti-trust slapping someone around.

 

[mac-er]

Don't see it happening...

1. Possible mergers or buyouts like this are typically always leaked to the public and reported on reputable financial media outlets (ie WSJ)

2. They wouldn't do it at Macworld, which is for Mac geeks. They would do it when the financial industry would be able to attend and ask questions. That is part of the fiduciary duty they offer to investors.

3. It would be bad business. Other companies that use AMD (ie Dell, HP) would drop the business because they wouldn't want to buy chips from a competitor. It wouldn't make since for Apple to then be making their own chips, financially.

 

[MisterMe]

... So anyways, if Apple bought AMD out, which it could with the $15 billion rotting in its coffers, it could do a lot of stuff to help:

1) Optimize performance in OS X
2) Optimize heat etc. in its computer designs
3) Manufacture everything in a Mac except for the sound/memory/hard drive.

...

Not going to happen, period. Look. When Apple announced the switch from PPC to Intel, the company made it clear that it would making the switch to purchase chips from Intel's catalog. The minimal heat generated by Intel chips allowed Apple to produce devices that were not possible otherwise. Suffice it to say, buying from Intel, Apple takes advantage of Intel's economies-of-scale.

Long story short: Each of the things that you suggested have been considered and rejected.

 

[ravenvii]

Nah. AMD offers nothing that Apple could use for their business. They could buy chips from AMD perhaps, but buying out AMD would not make any sense for them.

Sort of like saying Dell would buy AMD out. Doesn't make sense because it is not related to their business horizonally.

Sure you can argue on the vertical angle, but that kind of business is hard to make successful in today's world.

 

[CalBoy]

Other companies that use AMD (ie Dell, HP) would drop the business because they wouldn't want to buy chips from a competitor.

You mean how Apple used to buy chips from IBM only two years ago?

However, I agree with the assertion that AMD would be a bad deal. The only companies I see buying out AMD are investment firms who will bring back profitability and streamline production, and then sell off the shares at a large profit.

Nonetheless, even this doesn't seem to be all that possible. AMD is down right now, but I believe their forecast will improve next year. In the end, the greatest ironies would be if Intel simply put AMD out of its misery by buying it out.

 

[ReanimationLP]

I doubt it, AMD is bleeding cash.

They need to streamline their products, fix this merger thats bleeding money, stop taking forever to deliver a product then under deliver on that.

Also they need to can the CEO, hes leading the company into financial ruin, while crying that Intel is whipping their butts with the Core and that Intel is cheating and has a monopoly.

I used to love AMD, but I'm now an Intel guy.

 

[FF_productions]

There probably wouldn't be a benefit to buying AMD.

If anything they will put the money towards developing new products.

Maybe they should work a bit harder on OS X, it isn't perfect, people. I think it needs to get a bit slimmed down.