Apple could buy the mobile phone industry!

[Apple...]

http://www.asymco.com/2011/06/17/apple-could-buy-the-mobile-phone-industry/

Here's the article:

"The second quarter ends in less than two weeks. When it does, I expect Apple will have over $70 billion in cash. That figure has been growing predictably.

Also predictable has been the decline in value of Apple’s mobile phone competitors. Most spectacularly Nokia and RIM. The enterprise values of the public companies selling 75% of all phones sold world-wide are as follows:

Nokia $22.6b
RIM $13.8b
HTC $25.4b
Motorola Mobility $4.2b

Then...

Sony Ericsson $0.21b x 14 = $3.0b
Samsung $3.76b x 14 = $53b

That leaves valuing LG’s phone business which has not been profitable in the last four quarters. I assume a nominal value of $10b.

Given the current valuations, it would not be difficult for Apple to acquire every phone vendor except for Samsung with cash alone.

The more remarkable thing is that as market values of phone vendors continue to decline, Apple’s cash will continue to grow dramatically. Indeed, a time may soon come when Apple’s cash will be worth more than the entire phone industry."

All I think is "holy ****!"

Discuss.

 

[*LTD*]

This is what happens when you make great products and don't get involved in a race to the bottom with the rest of them. When you're more interested in making insanely great things than just making a buck. If that's all they were in the game for they would have licensed out OS X long ago and left it at that. Ditto for iOS.

Anyone can manufacture something cheap and just push sheer volume. But not everyone can (or has the guts to) swim in the other direction.

 

[Apple...]

Yeah. I know it would be utterly pointless for Apple to buy any one of them, but they have to do SOMETHING with their cash, right? Who in the industry would benefit?

 

[*LTD*]

Yeah. I know it would be utterly pointless for Apple to buy any one of them, but they have to do SOMETHING with their cash, right? Who in the industry would benefit?

I think at the moment they're gearing up to bid for the Nortel patents.

 

[kdarling]

What they could do, is be a good American citizen and bring all the part that's overseas into the USA, where they'll have to pay taxes on it like the rest of us.

That would be about $40 billion (of the total $70 billion), on which they'd pay $10 billion in tax, at Apple's current tax rate.

.

 

[0098386]

What they could do, is be a good American citizen and bring all the part that's overseas into the USA, where they'll have to pay taxes on it like the rest of us.

That would be about $40 billion (of the total $70 billion), on which they'd pay $10 billion in tax, at Apple's current tax rate.

.

And raise prices for everywhere else in the world? How will that benefit the huge iPhone market in Europe and Asia?

 

[GFLPraxis]

I'd rather them buy the music industry.

Couldn't do any worse than the RIAA.

 

[Apple...]

What they could do, is be a good American citizen and bring all the part that's overseas into the USA, where they'll have to pay taxes on it like the rest of us.

That would be about $40 billion (of the total $70 billion), on which they'd pay $10 billion in tax, at Apple's current tax rate.

.

Uh, no.

And raise prices for everywhere else in the world? How will that benefit the huge iPhone market in Europe and Asia?

Agreed. It's not that easy. I'm not sure what he's thinking exactly.

 

[Apple...]

So Apple now has more than $80 billion in cash for their own pleasure. Crazy, huh? I still can't think of anyone that they would want to buy though.

 

[ravenvii]

I'd rather them buy the music industry.

Couldn't do any worse than the RIAA.

Sure you can - it's name has a M, P, and two A's in it.

 

[Rodimus Prime]

So Apple now has more than $80 billion in cash for their own pleasure. Crazy, huh? I still can't think of anyone that they would want to buy though.

key problem with that 80 bil. Most of it is outside the US and Apple does not want to pay its taxes so it is not going to come in.

 

[*LTD*]

key problem with that 80 bil. Most of it is outside the US and Apple does not want to pay its taxes so it is not going to come in.

Well, that would count out Google and MS as well. I guess no one's really up to the (unlikely) task.

 

[Apple...]

Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

So Apple now has more than $80 billion in cash for their own pleasure. Crazy, huh? I still can't think of anyone that they would want to buy though.

key problem with that 80 bil. Most of it is outside the US and Apple does not want to pay its taxes so it is not going to come in.

Outside of the U.S. you say? Well, I guess that helps with securing "key components".

 

[Apple OC]

buying the phone industry? ... impossible

 

[Apple...]

buying the phone industry? ... impossible

Nope. Apple could buy everyone listed in the OP except Samsung. You're right though - the FCC wouldn't allow it.

 

[KingCrimson]

The way things are going Apple can buy MSFT & Intel in addition to the mobile industry. $150 billion in cash is inevitable, $400 billion in 10 years?

 

[Apple...]

Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

The way things are going Apple can buy MSFT & Intel in addition to the mobile industry. $150 billion in cash is inevitable, $400 billion in 10 years?

See, then it gets to the point where too much is just plain too much.

 

[thatoneguy82]

They can try to buy it, but it will never go through. Like mentioned, the FCC will not approve the purchase because it will be ending competition. Remember the Ma Bell days?

 

[*LTD*]

They can try to buy it, but it will never go through. Like mentioned, the FCC will not approve the purchase because it will be ending competition. Remember the Ma Bell days?

It was just a figurative example.

 

[RWinOR]

Does anyone remember what the movie was where Apple purchased Microsoft?

I think it was "Back to the future". When Apple was doing very poorly and Microsoft was on top of their game. The movie spoofed that Apple had become so big they bought Microsoft. Does not seem so unrealistic now.

 

[Fubar1977]

They could give the US Gov`t a loan... might make a small dent in that $14Trillion deficit.

Actually find it really sad that a company producing electronic goods is more solvent than the people running the country.

 

[turtle777]

Yeah. I know it would be utterly pointless for Apple to buy any one of them, but they have to do SOMETHING with their cash, right?

Apple will start paying a Dividend soon. If not in 2012, 2013 at the latest.

They will go the route of IBM, Cisco, Microsoft and other tech giants.

-t

 

[smoledman]

Why would Apple buy a carrier and get bogged down in it's inefficiencies? Apple got to their current position because they're a lean & mean operation and should stay that way.

 

[juliusaugustus]

buy the mobile phone industry ... and be hit with an antitrust lawsuit.

 

[Theadamh123]

Or they could buy google and then they practicley would have controle over the rest of the smart phone market