Why Apple Should Acquire AMD

Give it a rest.

Apple is worth more than AMD by a factor of 10+

thats not really how the stock market works, just coz apple is bigger doesnt mean it is a worthy investment and can afford something like that

I would say they can afford it, no problems there and it could be a worthy investment because what the guy said in the link:....

Apple will reap out of this (other than adding another revenue stream) is to have complete control over its hardware from a cost standpoint. If it can convert Macs to AMD and ATI chips, all the key components are being developed in-house. Talk about increasing margins. Apple could either squeeze out higher margins-per-PC to lower the cost-per-Mac to allow for affordable switchover from Windows or improve its bottom line directly. Regardless of which way you cut it, Apple is going to be a winner in all of this

PS.not that i think this will happen.

We could call them AAA(Triple A). HAR HAR HAR.

wes

wait apple has what kind of marketshare in the computer biz? its in a better position now than it would be if it acquired amd.

NOONE can afford to buy AMD

Would that make them a Green Apple?

Here's an argument for me to buy Apple:

I like apples and I'm hungry. Done, I've decided to buy apple (just one).

I don't want Steve Jobs anywhere near my PC.

Apple isn't thriving by saving on component prices. If they had acquired the powerPC business from Motorola or IBM, they would be trying to sell their powerbooks as space heaters. It isn't in their best interest to own their own chip manufacturing because it makes them hostage to those chips whether they are a good choice or not.

Samsung and IBM would both be better suited to acquire AMD, because they would both gain synergies from the acquisition, IBM in particular. I would have added Freescale to the list, but I'm not sure taking AMD private for ~$9Billion is a good idea. There would end up being way too much debt involved considering how the private equity guys like to do business.

This whole discussion could very well be moot if the terms on AMD's new $2.2Billion in debt are unfavorable toward early payment or the delisting of AMD as a publicly traded entity.

Editorial was poorly written. It doesn't even break the ice over the fact that Apple and Dell are PC/consumer device assemblers, whereas AMD is a silicon manufacturer - almost wholly separate industries requiring different expertise. At the surface it doesn't look strategic at all.

There's no accounting for the scenario that AMD develops chips inferior to Intel's (historically at the process, not architectural level) - wouldn't that put Apple in worse position than simply leaving AMD alone?

Jobs is an interesting executive and can probably pull off things we don't imagine, but I doubt we would be the first ones seeing the light in taking over AMD. A decade ago Apple was hardly bigger than AMD-ATI in terms of revenue, stock value, or cash on hand/assets. Losses were staggering and bankruptcy/acquisition rumors were ubiquitous - a similar position to AMD today. Jobs turned all that around, but the difference is he co-founded Apple and basically grew up with it. All along his company has left it to others to do the nitty-gritty manufacturing.

With a market cap of a measly $7.4Billion, AMD is an easy acquisition. The only problem is that they are heavily in debt.

I have questions about the sanity of those considering this.

I'm all well and good. About to head off for the day.

As for MS acquiring AMD... I'd have a heart attack.

Yes, it's true, Apple could aquire AMD without having to obtain financing even. Like someone else mentioned, they are sitting on 12.5 billion cash. They could buy out General Motors right now, if they wanted to.

Having said that, buying AMD would be an incredibly dumb thing to do.

I could see Apple buying Creative though.

I think AMD is being a little disingenuous in letting these private equity (or other) takeover rumors swirl. Before you seriously think they may happen, you should google "Intel AMD patent cross licensing agreement termination" and see what might happen. Not saying it would be terminated, but there might be some hidden costs to keep those agreements in place...

I dont think Apple would do that, but on the other hand it would make more sense than some private capital buying out AMD. If Jobs would do this, I bet he would think off something to make of AMD pure cash cow, he is genious in tech. in the same way as B.Gates is genious in marketing.

Tbh I think AMD would suffer from such deal, since Apple would make from it some very cool but niche and proprietary products. Intel would only love it. We dont...