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Apple is worth 4 times Intel's value ([1], [2]), and also, has 4x more sales. In my opinion, Apple buying TSMC (much smaller than Intel [3]), Panasonic (quite s
by faragon 10y ago
Apple is worth 4 times Intel's value ([1], [2]), and also, has 4x more sales. In my opinion, Apple buying TSMC (much smaller than Intel [3]), Panasonic (quite small in comparison, too [4]), and Sharp (tiny [5]), could mean almost complete vertical integration, including CPU, RAM, battery, and display. After that, not only Apple could avoid relying on Intel for desktop processors, but able to drive its margins higher than ever (replacing $300-1000 CPUs with $50-200 own CPUs, controlling even more cutting-edge litography planning, etc.).
[1] http://www.forbes.com/companies/apple/ http://www.forbes.com/companies/apple/
[2] http://www.forbes.com/companies/intel/ http://www.forbes.com/companies/intel/
[3] https://en.wikipedia.org/wiki/TSMC https://en.wikipedia.org/wiki/TSMC
[4] http://www.forbes.com/companies/panasonic/ http://www.forbes.com/companies/panasonic/
- gilgoomesh 10y agoThis has been true for years. It remains unlikely because keeping suppliers independent offers more flexibility – and Apple's buying power already keeps costs low.
- basch 10y agoApple could behave like Samsung. Buy the companies, merge them into a hardware fab unit, and then compete in the free market. Fab other companies chips, bid on parts. Apple is able to outbid Samsung for Samsung made chips.
- culturestate 10y agoI can't imagine Apple doing this, for all of the obvious reasons. I absolutely could imagine a more wide-ranging strategic partnership with e.g. TSMC, though – sort of like their enterprise sales tie-ups with IBM and Deloitte.
- oger 10y agoSharp was acquired by Foxconn. This was announced earlier this year and the transaction was completed in August. And BTW they will revive the Sharp brand for flatscreen TVs which will run on Alibaba's own YunOS (which translates to cloud OS)...
- faragon 10y agoThank you.