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Wonder if it occurred to someone that Apple could simply buy Samsung...
by EwanG 11y ago
Wonder if it occurred to someone that Apple could simply buy Samsung...
- bane 11y agoI don't think you understand how big Samsung is. Any fanciful acquisition notion is more likely to go the other way around and Apple would merely be one of the larger divisions of the conglomerate.
- visakanv 11y agoAccording to Forbes, Google's market capitalization currently stands at around $382 billion, while Samsung is currently worth $186 billion. That would enable Apple to buy, and shut down, two of its biggest rivals in the consumer electronics space. – http://www.engadget.com/2015/02/11/what-you-could-buy-with-apple-700-billion-market-cap/ http://www.engadget.com/2015/02/11/what-you-could-buy-with-a...
- bane 11y agoSamsung's yearly revenue is in excess of $300 billion/year and growing. About 2x Apple's. Samsung Electronics is a division of Samsung and accounts for $186 billion/year. Put another way, Samsung's Electronics division earns more revenue that all of Apple.
- jeromegv 11y agoMarket value is the important metric here
- bane 11y agoMarket value != buying power. The point is, people get too enamored with Apple and lose all sense of perspective. The notion of Apple buying out Samsung is so absurd that it provides an almost scary demonstration of this effect.
- pasta_2 11y agoSamsung Electronics is a publicly traded corporation and the market value is what it would cost to acquire them (plus some premium). This is sort of academic because it would be a dumb use of Apple's cash to acquire them and probably wouldn't be approved.
- bane 11y agoSo is Apple, and Samsung has nation state support it can use as leverage in a buyout (Since we're trading stupid buyout scenarios)
- saurik 11y ago(revenue != profit)
- bane 11y agoAnd? Revenue is still a component in purchase price. Apple doesn't have enough cash on hand to buy Samsung either way. You folks can keep throwing out things-measured-in-dollars like they mean things. But none of them are components that mean cash>asking price.
- wesnerm2 11y agoThis may not really be true anymore. Apple may earn more revenue than Samsung in 2015. Apple reported 74.6 billion in sales versus Samsung's 48.8 in calendar 2014 Q4. The most recent quarter saw pretty even results with Samsung slightly ahead with 43.6 billion vs Apple's 42.1 billion.
- bane 11y agoThan Samsung Electronics. Again, an important distinction. We're comparing revenue of all of Apple against a division of Samsung.
- cma 11y agoMarket cap hinges on projected profit margins on projected revenue.
- bane 11y agoNo, Market Cap is defined as total dollar market value of outstanding shares of a company. Seriously, is this a game where people come out of the wood-work and just start saying words that describe metrics measured in dollars and then misapplying them?
- cma 11y agoI said it hinges on it. There are other factors like defensive purchases (WhatsApp), interest rates, etc. that can also affect market cap. I wasn't talking about the definition of market cap.
- oldmanjay 11y agowow, that article is amazingly pointless. I don't have much in the way of expectations for Engadget but I can't even imagine what they were going for there.