Apple...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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." :eek: :D

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

Discuss. :)
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
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...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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? :confused:
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
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? :confused:

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

kdarling

macrumors P6
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.

.
 
Last edited:

0098386

Suspended
Jan 18, 2005
21,574
2,908
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?
 

Apple...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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. :confused:
 

Apple...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
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.
 

Apple...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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)

Rodimus Prime said:
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". :rolleyes:
 

KingCrimson

macrumors 65816
Mar 12, 2011
1,066
0
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...

macrumors 68020
Original poster
May 6, 2010
2,148
0
The United States
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)

KingCrimson said:
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

macrumors 68000
Jul 23, 2008
1,895
2
Beach Cities, CA
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?
 

RWinOR

macrumors 6502
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

macrumors 6502a
Jul 30, 2010
863
14
North Yorkshire, UK
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

macrumors 6502a
Apr 30, 2004
682
18
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

macrumors 68000
Oct 17, 2011
1,940
349
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.
 

Theadamh123

macrumors member
Dec 11, 2011
40
0
UK
Or they could buy google and then they practicley would have controle over the rest of the smart phone market :p
 
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