Go Back   MacRumors Forums > News and Article Discussion > iOS Blog Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old May 27, 2014, 12:53 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Apple Appears Set to Lose Bid for iPhone Display Chip Maker to Synaptics




Back in April, rumors indicated Apple was in talks with chipmaker Renesas Electronics over the potential acquisition of its Renesas SP Drivers division, which produces chips for smartphone displays including for the iPhone.

As it turns out, Renesas Electronics appears set to sell its stake in Renesas SP Drivers to Synaptics, another chip manufacturer, instead of Apple. According to Reuters, the talks between Apple and Renesas "failed to make progress", leading Renesas to move forward with Synaptics. Apple was originally offering 50 billion yen or $479 million for Renasas' 55 percent stake in the company, which is also partially owned by Sharp and Powerchip.
Quote:
Apple Inc had also been in talks about a possible purchase of the stake in Renesas SP Driver in what was seen as a potential move to shore up its global supply chain, but the sources said those talks failed to make progress and Renesas had narrowed its consideration to Synaptics.
Apple currently uses chips from Renesas Electronics in its iPhone displays, improving both image sharpness and battery life. It is unclear how a failed acquisition would affect the ongoing relationship between the two companies.

While Reuters suggests that the deal between Renesas and Synaptics is all but certain, Nikkei claims that Apple is still interested but that pricing was a major obstacle.
Quote:
Apple still seems interested in acquiring the unit. Renesas "hopes to reach an agreement with Synaptics on the sale and will continue to try to persuade Apple to give in," a person familiar with Renesas' plans said.
Renesas was also reportedly convinced by some of its non-Apple customers that their access to the company's components could be cut off if Apple were to acquire the division, driving Renesas to give an edge to Synaptics.

Despite the possible failure to purchase Renesas SP Drivers, Apple's effort is part of a trend that has seen the company take a keen interest in controlling its own production supplies and core technologies in recent years. Apple recently signed a deal with sapphire producer GT Advanced Technologies and has also purchased several chip firms in the past, including P.A. Semi and Passif Semiconductor.

Article Link: Apple Appears Set to Lose Bid for iPhone Display Chip Maker to Synaptics
MacRumors is offline   0 Reply With Quote
Old May 27, 2014, 12:56 PM   #2
IJ Reilly
macrumors P6
 
IJ Reilly's Avatar
 
Join Date: Jul 2002
Location: Palookaville
Quote:
Originally Posted by MacRumors View Post
Apple was originally offering 50 billion yen or $479 for Renasas' 55 percent stake in the company
We can see why that offer might have seemed a little low.
__________________
*The season starts too early and finishes too late and there are too many games in between.
Bill Veeck
IJ Reilly is offline   12 Reply With Quote
Old May 27, 2014, 12:58 PM   #3
Amazing Iceman
macrumors 68030
 
Amazing Iceman's Avatar
 
Join Date: Nov 2008
Location: Florida, U.S.A.
With two potential buyers, Renesas will try to squeeze as much money from either buyer now that there's some sort of competition between them.
__________________
17" MacBook Pro (2007) iPad Air WiFi+Cell 128 GB iPhone 5s 64 GB T-Mobile AppleTV 2
Follow @AmazingIceman for useful tech info and more (mention MacRumors).
Amazing Iceman is offline   0 Reply With Quote
Old May 27, 2014, 01:00 PM   #4
oftheheavens
macrumors 6502a
 
Join Date: Jul 2008
Location: cherry point
I'll top their offer and bid $480!
oftheheavens is offline   2 Reply With Quote
Old May 27, 2014, 01:15 PM   #5
IJ Reilly
macrumors P6
 
IJ Reilly's Avatar
 
Join Date: Jul 2002
Location: Palookaville
Quote:
Originally Posted by oftheheavens View Post
I'll top their offer and bid $480!
Throw in a couple of iPhones and you've got a deal.
__________________
*The season starts too early and finishes too late and there are too many games in between.
Bill Veeck
IJ Reilly is offline   1 Reply With Quote
Old May 27, 2014, 01:19 PM   #6
oatman13
macrumors regular
 
Join Date: Feb 2013
You guys are too funny. 50 billion YEN is 489 Million USD.
oatman13 is offline   0 Reply With Quote
Old May 27, 2014, 01:19 PM   #7
nostaws
macrumors 6502
 
Join Date: Jan 2006
Wow. I didn't know Japan had fallen on such hard times. I'd better take my American dollars and head over there.

Quote:
Originally Posted by MacRumors View Post
Apple was originally offering 50 billion yen or $479 for Renasas'
On a more serious note: Apple can't pony up the dough for a chip maker but is allegedly ready to buy beats for billions?
nostaws is offline   1 Reply With Quote
Old May 27, 2014, 01:20 PM   #8
Ed217
macrumors member
 
Join Date: Nov 2012
Just a few missing zeroes...
Ed217 is offline   0 Reply With Quote
Old May 27, 2014, 01:24 PM   #9
ghostface147
macrumors 65816
 
Join Date: May 2008
I think they meant 490 million.
ghostface147 is offline   0 Reply With Quote
Old May 27, 2014, 01:27 PM   #10
Cuban Missles
macrumors 6502a
 
Cuban Missles's Avatar
 
Join Date: Dec 2012
Location: East Coast, USA
Quote:
Originally Posted by IJ Reilly View Post
We can see why that offer might have seemed a little low.
Took me a second, but now this is halarious. I will bid $1000, all cash, in unmarked $20 bills. I have the 50 bills in an envelope.

LOL
__________________
I have a collection of Apple stickers from all my Apple product purchases - they are white (the stickers not the products)
Cuban Missles is offline   0 Reply With Quote
Old May 27, 2014, 01:27 PM   #11
WildCowboy
Administrator/Editor
 
WildCowboy's Avatar
 
Join Date: Jan 2005
Thanks for spotting the error, folks.
__________________
Editor in Chief, MacRumors
WildCowboy is offline   2 Reply With Quote
Old May 27, 2014, 01:28 PM   #12
genovelle
macrumors 6502
 
Join Date: May 2008
Quote:
Originally Posted by nostaws View Post
Wow. I didn't know Japan had fallen on such hard times. I'd better take my American dollars and head over there.



On a more serious note: Apple can't pony up the dough for a chip maker but is allegedly ready to buy beats for billions?
I'm sure this chipmaker is not bringing in 1.5 billion a year with high margins like beats. Chips is a low profit market and this was for only a 55% stake. I'm sure their purpose was to make sure a competitor didn't get them. I don't think they will mind if this company does.
genovelle is offline   0 Reply With Quote
Old May 27, 2014, 02:08 PM   #13
nostaws
macrumors 6502
 
Join Date: Jan 2006
Don't confuse valuation with revenue with profit.

Beats has never earned a PROFIT of $1.5 billion per year. It might sell $1.5 billion worth of headphones. But, with that $1.5 billion in revenue they have to pay to make the headphones they sell, advertise, run the company, etc.

Beats as a company is valued somewhere between $1 billion and $1.5 billion.

Quote:
Originally Posted by genovelle View Post
I'm sure this chipmaker is not bringing in 1.5 billion a year with high margins like beats. Chips is a low profit market and this was for only a 55% stake. I'm sure their purpose was to make sure a competitor didn't get them. I don't think they will mind if this company does.
nostaws is offline   1 Reply With Quote
Old May 27, 2014, 02:45 PM   #14
69Mustang
macrumors 6502a
 
69Mustang's Avatar
 
Join Date: Jan 2014
Location: In between a rock and a hard place
It just appears that Renesas wants a diversified customer base just as Apple wants a diversified vendor base. Smart move. To have all your chips in one basket isn't the best idea a company can have.

/pun intended
__________________
I own products from Apple, Samsung, Google, MS, and a ton of other companies. All of it works and does exactly what I want it to do. Personal use case. Nothing else matters.
69Mustang is offline   0 Reply With Quote
Old May 27, 2014, 03:11 PM   #15
IJ Reilly
macrumors P6
 
IJ Reilly's Avatar
 
Join Date: Jul 2002
Location: Palookaville
Quote:
Originally Posted by nostaws View Post
Don't confuse valuation with revenue with profit.

Beats has never earned a PROFIT of $1.5 billion per year. It might sell $1.5 billion worth of headphones. But, with that $1.5 billion in revenue they have to pay to make the headphones they sell, advertise, run the company, etc.

Beats as a company is valued somewhere between $1 billion and $1.5 billion.
If Beats' margins are close to Apple's (and I suspect they are), then their annual earnings can be fairly estimated at around $500M. This would make the company very cheap indeed at $1-1.5B, as that would be a ratio of only two or three times earnings, and doesn't even take any of their assets into account.
__________________
*The season starts too early and finishes too late and there are too many games in between.
Bill Veeck
IJ Reilly is offline   0 Reply With Quote
Old May 27, 2014, 03:29 PM   #16
ghostface147
macrumors 65816
 
Join Date: May 2008
And it's fixed.
ghostface147 is offline   0 Reply With Quote
Old May 27, 2014, 10:38 PM   #17
iolinux333
macrumors 65816
 
Join Date: Feb 2014
Quote:
Originally Posted by IJ Reilly View Post
If Beats' margins are close to Apple's (and I suspect they are), then their annual earnings can be fairly estimated at around $500M. This would make the company very cheap indeed at $1-1.5B, as that would be a ratio of only two or three times earnings, and doesn't even take any of their assets into account.
Maybe they can start distributing some crappy Chinese EarPod copies they can get off a streetcorner vendor in Shanghai and bump their worth by a few $billion.

----------

Quote:
Originally Posted by iolinux333 View Post
Maybe they can start distributing some crappy Chinese EarPod copies they can get off a streetcorner vendor in Shanghai and bump their worth by a few $billion.
And maybe they can hire someone to make an app for them too. Crappy EarPods plus an app should be worth $2billion at least!
iolinux333 is offline   0 Reply With Quote
Old May 27, 2014, 11:32 PM   #18
VanillaCracker
macrumors 65816
 
Join Date: Apr 2013
Location: Washington D.C.
After the Beats acquisition, I wouldn't accept anything under $3.2 Billion! No matter what my company was contributing
VanillaCracker is offline   0 Reply With Quote
Old May 27, 2014, 11:53 PM   #19
Rocketman
macrumors 603
 
Rocketman's Avatar
 
Join Date: Dec 2001
Location: Claremont, CA
Hmmm. $479m. Synaptics (SYNA) has a $2B market cap. Up 50% for the year and a P/E of 40 so they can afford to overpay for the tech and Apple can keep using the tech until SYNA crashes at which time AAPL can buy them on the open market for a 50% discount. Super high short interest right now.

They are pouncing while they can! Root for them to do it in time!

Apple's time will come.

Rocketman
__________________
Think Different-ly!
All 357 R or D House jobs bills over 4 years died in the D Senate, ordered by the D President. Buy a model rocket here: http://v-serv.com/usr/instaship-visual.htm Thanks.
Rocketman is offline   0 Reply With Quote
Old May 28, 2014, 02:52 AM   #20
macs4nw
macrumors 68020
 
macs4nw's Avatar
 
Join Date: Sep 2010
Location: On Safari…..
Quote:
Originally Posted by nostaws View Post
…..Apple can't pony up the dough for a chip maker but is allegedly ready to buy beats for billions?
In that context, that sure makes one wonder. Or they must have some wicked plans for Beats, far beyond what us mere mortals can envision.
__________________
Due to my aversion to bragging and clichés, no words of wisdom to be found on this line.....
macs4nw is offline   0 Reply With Quote
Old Jun 5, 2014, 10:05 AM   #21
raycruz87
macrumors newbie
 
Join Date: Jun 2014
Are the iPad mini non retina and iPhone 5 going to support predictive text? I have the beta but am not able to use this feature.
raycruz87 is offline   0 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > iOS Blog Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Apple Seeking to Boost iPhone Display Quality by Acquiring Chip Firm Renesas SP Drivers MacRumors MacRumors.com News Discussion 28 Apr 3, 2014 01:44 PM
Facebook Appears Set to Debut iPhone Competitor Built on Android on April 4 MacRumors MacRumors.com News Discussion 232 Apr 3, 2013 01:18 PM
Shares of Television Set Maker Loewe Jump as Apple Acquisition Rumors Resurface MacRumors MacRumors.com News Discussion 65 Feb 14, 2013 05:52 PM
Staples Appears Set to Begin Selling Apple Products in U.S. MacRumors MacRumors.com News Discussion 56 Jan 30, 2013 04:01 PM
Retina Display 13-inch MacBook Pro Appears on Google Before Today’s Apple Event Michaelgtrusa MacBook Pro 3 Oct 23, 2012 09:32 AM

Forum Jump

All times are GMT -5. The time now is 04:50 AM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC