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Apple should buy AMD?

updated 08:40 pm EST, Sat November 24, 2007

Apple should buy AMD

Apple should buy AMD, according to a report that outlines the ten reasons to do so. Financial analysis website Seeking Alpha has created a top ten list of reasons that it thinks Apple should buy processor manufacturer AMD. The report argues that Apple's best features, such as its system architecture, operating system, and applications will compliment AMD's multi-core CPUs and energy saving technology. The new AMD Spider chip that combines the processor and graphics chipset would be a benefit, and with Apple's unique position, they could still sell to AMD's current customers and it would not compete with either of the companies' customer bases. Intel would gain a more balanced competitor, and he says that Apple's solid financial situation could speed up AMD/ATI's technology innovation process.

The blogger believes that it would lower Apple's margins and raise profits, and that it wouldn't be overly difficult to incorporate the chip, since Apple already deals with the Intel platform. AMD would be a relatively inexpensive acquisition for Apple, as the ATI acquisition cost AMD $5.4 billion, mostly in cash. Lastly, he argues that it would keep AMD in American hands, and that the government would not have to deal with the regulation of monopoly and competition policy.


AMD's Spider




by MacNN Staff

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Comments

  1. MiMiC

    Joined: Dec 1969

    0

    Synergies?

    Although Apple now claims NOT to be a hardware company, there is possible synergies in development as the two companies would work more in tandem eventually yielding a more tightly woven system.

    This could get OS X onto more platforms quicker and Apple into the gaming market.

    Now more then ever it is important that hardware and software work on the same development schedule to produce greater products.

  1. l008com

    Joined: Dec 1969

    0

    umm

    I don't get the part about it being cheap? AMD bought ATi for 5 Billion, therefore it would be cheap for apple to buy them both?

  1. jmonty12

    Joined: Dec 1969

    0

    buy adobe instead

    s**** that. Apple should buy Adobe.

  1. ophiochos

    Joined: Dec 1969

    0

    the usual typo

    that's 'complEment', guys.

  1. ophiochos

    Joined: Dec 1969

    0

    why should they?

    why should Apple buy chips when they get them from Intel? Should Apple buy Starbucks so they can provide coffee to their staff as well? or a chair manufacturer for their offices? This might have made sense in the switch from PowerPC. But now it's just silly.

  1. mitchcohen

    Joined: Dec 1969

    0

    Bad idea

    Bad (and strange) idea. This would tie Apple's processors to what they could develop internally. If Intel had something better, the whole industry would have it except for Apple. I'd rather see Apple have the choice of Intel or AMD, which they have now (although they've never used AMD).

    Apple should spend some of their cash and buy a few companies or products that would be truly additive, companies that would expand the Mac market.

  1. Paradise Pete

    Joined: Dec 1969

    0

    Stuck

    This is just the wishful thinking of some guy stuck with a bunch of AMD stock. What he really ought to do is just unload that stock and forget about it.

  1. Squirrel_Monkey

    Joined: Dec 1969

    0

    Hit fodder

    Being in the hardware business is an entirely different thing than being in the end systems business. Apple is better off where it is now -- in a strong strategic partnership with Intel. Why distract the company?

    Buying Adobe makes some sense because Adobe software is practically synonymous with Apple, and Apple could finally control the software that pushes sales of their higher-end systems. But, just because Apple writes software does not mean they should buy Adobe, even if is ripe for the picking.

    Buying AMD for gaming possibilities is not aligned with Apple's quiet stance on gaming in general. Even in the post-Avie era, Apple seems uninterested in making gaming a top priority. This is likely because specialized systems (consoles) are handling gaming just fine, and Apple respects the domains of specialized systems, as they command a strong one themselves.

  1. Paradise Pete

    Joined: Dec 1969

    0

    The ten reasons

    1) Apple’s best computer system architecture, operation system, user interface, and applications will combine with AMD’s most advanced and genuine multi-core CPUs and energy saving technology; This is just silly. Why would they have to buy the company for that to be true?

    2) Apple will have better integration for its computer, particularly considering the new AMD Spider chip that combines AMD-ATI CPU and graphics in one chip; Why would they have to buy the company for that to be true?

    3) With Apple’s unique position, it can still sell AMD’s CPUs and other chips to all AMD’s current customers and won’t compete directly with neither Apple’s nor AMD’s current customers after the acquisition;

    This part is obviously not going so well. Why would Apple want that?

    4) Intel (INTC) will gain a more balanced competitor, which is healthy for the entire semiconductor industry, and even Intel may benefit from it; And this helps Apple? Why would Apple buying it suddenly make it "more balanced?"

    5) Apple’s solid financial condition not only can support but also will speed up technology innovation; further it may change the entire business and technology landscape - from the semiconductor industry, PC industry, enterprise IT industry, and consumer electronics industry, to wireless communication industry;

    So AMD needs money, and they don't know how to do those other things?

    6) It reduces cost for Apple and improves its profit margin; AMD's had plenty of losing quarters, which hardly would improve Apple's profit margin.

    7) It is not technically difficult since Apple has already worked out with Intel CPU; Duh.

    8) It is cheap. AMD spent $5.4 billion alone to acquire graphics chip company ATI mostly by cash in June 2006; What the second part has to do with it I don't know, but the reason it's cheap is because nobody wants to own the stock.

    9) The government will be glad and the deal won’t face challenge by government regulation of monopoly and competition policy; This is not a reason.

    10) It will keep AMD American. This is not a reason.

  1. Oh Blah Dee Blah Dah

    Joined: Dec 1969

    0

    Wrong!

    Apple should NOT buy AMD.

    Apple excels at ASSEMBLING commodity hardware, together with its patented hardware inventions, and wraps these around its wonderful software.

    Processor technology and processor manufacturing will distract Apple from its primary mission: to provide fun to use and productive products to people.

    It will cost Apple billions to buy AMD, and then Apple will need to spend billions more to keep up with processor technology.

    One chip plant can easily cost 3 billion to build. And, Apple would need numerous plants. These plants will be obsolete, or not cost effective to operate, in 2 to 3 years. Then blllions MORE will have to be invested by Apple.

    Apple has the best business model: DESIGN the system, OUTSOURCE the manufacturing, PARTNER with companies that have necessary products or expertise, and ENHANCE the user experience.

    The other companies would LOVE to have Apple's profit margins, ESPECIALLY the processor companies and the Asian board manufacturers.

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