Apple to Buy Mobile Security Company AuthenTec for $356 Million

[MacRumors]

Reuters reports that Apple will be acquiring AuthenTec for $356 million.

AuthenTec Inc (AUTH.O), which makes fingerprint sensor chips used in personal computers, said it agreed to be bought by Apple Inc (AAPL.O) for about $356 million.

Reuters describes AuthenTec as a maker of fingerprint sensor chips. AuthenTec recently had announced a partnership with Samsung as their VPN Security provider.




From their fact sheet, AuthenTec describes its technology:

AuthenTec's award-winning smart fingerprint sensors provide multiple touch-powered features that extend beyond user authentication to include convenience, personalization and touch control. The Company's TouchChip area fingerprint sensors and modules comply with government and industry standards and offer the ruggedness, strong security and ease of integration needed for quick and broad deployment. TouchChip sensors dramatically lower the size, cost and power of fingerprint sensors versus optical-based fingerprint solutions.

AuthenTec's "swipe sensors" is described to use sub-surface technology to read the live layer of skin beneath the skin's surface.

Notably, one sensor is marketed for use specifically for authentication for mobile wallets. Apple has been rumored to be looking into mobile payments. Their Passbook technology in iOS 6 is a first step, but Apple has yet to deploy a more full scale system. Fingerprint authentication could fit into a larger payment strategy.

SeekingAlpha had recently speculated that AuthenTech may supply security chips for the next generation iPhone.

Apple is not going to the trouble of adding a biometric sensor just so that you don't have to use a four digit password. They are adding a biometric sensor so that the iPhone can become a safe and secure payment device.

Article Link: Apple to Buy Mobile Security Company AuthenTec for $356 Million

[gramirez2012]

hmm...fingerprint security for iPhone? that would be cool.

[refect]

I've always wanted a finger print scanner to unlock my phone. My only question is where are these "20 million mobile phones" that already have this tech?

[chaosconan]

Originally Posted by gramirez2012

hmm...fingerprint security for iPhone? that would be cool.

This is awesome. Next version of Macbook, iMac, iPhone, iPad, and iPhone will have a finger scanner located near the pad or will replace the menu button on the iPhone and it will automatically log you in instead of having to enter your username and password.

Of course this has been tried before with notebooks and PDA's but with dismal failure. But Apple will make it better and succeed.

[samac92]

from 9to5mac:

Just last week, AuthenTec entered an agreement with Samsung to implement secure VPNs for its Android hardware. Whoops.

[wildpod]

They need to put the sensor behind the screen.

[AlexBass]

Touchscreen macintosh? Imagine the price :|

----------

Originally Posted by chaosconan

This is awesome. Next version of Macbook, iMac, iPhone, iPad, and iPhone will have a finger scanner located near the pad or will replace the menu button on the iPhone and it will automatically log you in instead of having to enter your username and password.

Of course this has been tried before with notebooks and PDA's but with dismal failure. But Apple will make it better and succeed.

Apple always make it better and succeed, there will be no exception here : )

[adildacoolset]

Fingerprint sensors will be in future apple products people!!(And I don't think they'll merely be for locking and unlocking)

[DTphonehome]

Seems like a high price for what doesn't look like a particularly unique technology. Am I missing something?

[samh004]

Hope to see this tech in the next iPhone, would be pretty cool, though as I don’t use a passcode already, security isn’t really that big for me

That said, I can imagine this tying into iCloud and iTunes for a more futuristic security system for accounts. Would be interesting.

[rmwebs]

Originally Posted by AlexBass

Touchscreen macintosh? Imagine the price :|

----------



Apple always make it better and succeed, there will be no exception here : )

Other than the appearance of the scanner, what can you seriously do to improve on a fingerprint scanner based authentication system?

[Daalseth]

Originally Posted by chaosconan

Of course this has been tried before with notebooks and PDA's but with dismal failure.

And that's why I'm very dubious about this or any other biometrics system. All biometrics are is a digital password generated from your fingerprint. Your fingerprint unlocks a hash that is the security key. All someone has to do is steal the hash and they're in. Worst yet, you can't change your 'password' without getting a new fingerprint.

We'll see how Apple implements this but I'm skeptical.

[MacBoobsPro]

As it stands NFC payment is stupid. Anyone could steal your phone and buy stuff with it. A way to secure it is with finger print technology. If your finger print it 'active' the payment will go through.

[Macboy Pro]

I'd like the ability to get a fingerprint if your phone is stolen and have it reported to a database. Bet there would be a lot less stolen phones. The alternative is a remote self destruct like a James Bond Movies. (Hot Potato anyone? )

[Lunchb0x8]

I'd love a fingerprint scanner to be on iPhones, iPads, MacBook Pro and airs, and heck even the iMac.

Would sure beat a pass code for security.

[vasekcz]

This was last feature, which I miss on Apple machine after switching from IBMs (international business machine)

[Henriok]

Biometric and sensor companies probably have a lot more up their sleeves than just the products they have brought to market.

[acidblue]

Please note that I am a professional software engineer...

It's amazing to me that hardware companies, such as AuthenTec, who produce actual tangible products are purchased for significantly less than some silly, single shot app (like silly photo apps, and wow there was a pun in there) development companies. There is so much more needed in the engineering of hardware, and the accompanying software than there is in a stupid 'social app'. Hardware companies have to deal with real world engineering, real-world supply chain management etc. Where silly little software companies can just offload all the distribution off to the cloud. An app company can make a silly picture taking app that distorts your photos and they are all of a sudden worth a billion dollars; crazy.

/rant.

But, all-in-all, it's a cool acquisition. Hopefully they do something cool with it.

[Kaibelf]

Originally Posted by DTphonehome

Seems like a high price for what doesn't look like a particularly unique technology. Am I missing something?

I find it hilarious how many people think they know the cost vs. benefit of Apple's acquisitions more than Tim Cook and Co. They don't just buy up companies for no reason, and they don't waste money, but, like all things, they keep it close to the chest.

[vineetm]

Great, no third party apps then

[MacFan23]

Originally Posted by Henriok

Biometric and sensor companies probably have a lot more up their sleeves than just the products they have brought to market.

Yeah, a lot of IP

[Gasu E.]

Originally Posted by Daalseth

And that's why I'm very dubious about this or any other biometrics system. All biometrics are is a digital password generated from your fingerprint. Your fingerprint unlocks a hash that is the security key. All someone has to do is steal the hash and they're in. Worst yet, you can't change your 'password' without getting a new fingerprint.

We'll see how Apple implements this but I'm skeptical.

But, in this case the hash would be coming from a physical chip hardwired inside the phone. So the hacker would also need to somehow emulate that as well.

[chaosconan]

Originally Posted by Daalseth

And that's why I'm very dubious about this or any other biometrics system. All biometrics are is a digital password generated from your fingerprint. Your fingerprint unlocks a hash that is the security key. All someone has to do is steal the hash and they're in. Worst yet, you can't change your 'password' without getting a new fingerprint.

We'll see how Apple implements this but I'm skeptical.

You could use it for Electronic Signature. When you buy something or need to sign some contract on your iPhone or Macbook the scanner can be used for Electronic Signatures instead of what they have today where you enter your name twice which I think is a silly way of doing Electronic Signature.

[kalsta]

Originally Posted by Macboy Pro

I'd like the ability to get a fingerprint if your phone is stolen and have it reported to a database. Bet there would be a lot less stolen phones. The alternative is a remote self destruct like a James Bond Movies. (Hot Potato anyone? )

Now that's a great idea! Er… the fingerprint capturing I mean. Now all you have to do is address privacy concerns, get it government approved, coordinate with police systems and databases… Yep, I can see it coming to the iPhone in 2024.

[naveah]

Do you guys think this has any chance of making it into the 2012 iPhone? Usually, it takes Apple some time to assimilate their acquisitions into their products (e.g., the maps companies or Siri). Maybe the 2013 iPhone?