Apple could buy lion’s share of mobile rivals in cash estimate analysts

Chris Davies - Jun 17, 2011, 9:54am CDT
Apple could buy lion’s share of mobile rivals in cash estimate analysts

Apple could feasibly buy the bulk of its competitors using its cash reserves alone, it’s been suggested, with only Samsung proving beyond its reach should Steve Jobs decide to go on a bizarre cellular spending spree. Asymco crunched the stats and figured that, with Apple likely to announce $70bn in cash and other immediate assets in its Q2 2011 financial results, it could readily snap up Nokia, RIM, LG, Motorola Mobility, Sony Ericsson and LG.

HTC’s enterprise value, it’s estimated, is $25.4bn, while Nokia comes in at $22.6bn and RIM at $13.8bn. Motorola Mobility is just $4.2bn. As for Sony Ericsson and LG, they’re trickier to calculate being subsidiaries of larger firms, but Asymco reckons roughly $3.0bn for the former and a nominal $10bn for the ailing latter.

Samsung is the only hiccup, with a hefty $53bn in the analyst’s estimates. That would put it outside the reach of Apple’s predicted Cash, Cash Equivalents, Short-term marketable securities and long-term Marketable Securities. However, with Apple’s coffers steadily increasing, that may not be the case for much longer.


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12 Responses to Apple could buy lion’s share of mobile rivals in cash estimate analysts

  1. This is an unfair analysis… you’re comparing an entire electronics company, that produces a huge range of desktops, all in ones, laptops, the most successful pmp in the world, and a small line of phones; to several mobile phone only companies, and when you compare them to other full line companies, you take their mobile portions only!  Come on, apples to apples people!

  2. This is an unfair analysis… you’re comparing an entire electronics company, that produces a huge range of desktops, all in ones, laptops, the most successful pmp in the world, and a small line of phones; to several mobile phone only companies, and when you compare them to other full line companies, you take their mobile portions only!  Come on, apples to apples people!

    • If Apple can buy an entire company it surely can buy their mobile division as well. Their is no need of apples to apples comparison when an apple is bigger than the fruit basket.

      • But that’s the problem. The apple is not bigger than the fruit basket. It’s only bigger than one apple inside.

        • FuckinShitDamnAss, you are way too worried about such a non-issue!  This article’s sentiment is not that big of a deal.  Useless articles like this breed even more useless, dumb statements.

  3. Yeah, but just because i have $100 in my pocket doesn’t means i have to spend it. I think $AAPL is doing just fine right now and they really don’t need to be number 1 in market share.

    • Apple would be doing fine if it was a private company, but it’s not a private company. It’s a corporation that has to begin to increase asset turnover, either through acquiring more profitable businesses or shedding low profit ones.  It’s already proven its strengths in achieving high profit margins in mobile, but without acquiring a high profit product mix, it’s asset turnover will plateau and it’s stock price will become stale until it starts to jitter on a downward trend. $70 billion in cash for a company as SMALL as Apple is a lot of lost opportunity if it does not branch out in a new area or acquire more IP to exploit.

  4. Ehh…

    Even if Apple had ties to the federal reserve to print money for them…

    There are companies that Apple simply could not buy no matter how much cash they have…

    Samsung, Sony, LG, not sure about HTC, but those companies are closely tied to their local governments…

    Western companies however are like prostitutes that are close to their local governments…

    Also, for western and eastern companies alike have a lot of legitimate legal methods preventing hostile takeovers…

    if there wasn’t I would just be the federal reserve buying up everything since they’re not really audited to begin with…even though citizens would probably end up taking the punch when they stop by Kroger for groceries…but…what do they matter…

    God Bless America~! meh…rambling about a bunch of non sense!

  5. really misleading article,

    for example, Samsungs phone division may be worth 53bn, but samsung as a company is worth far more.
    the article makes it sound like apple could buy these companys outright, instead of just their mobile divions

    also whilst its amazing apple has 70bn in assets, Samsung has near 300bn

  6. competition is good for everybody though…

    I they really wanted to be dastardly they’d buy up IP that prevented some handsets to be made without license.. then they could either hault production OR just make sure they get $$ for every competing handset made.. (like Microsoft gets out of HTC)

  7. It is nigh impossible to check out your favourite technology news site anymore without coming across some ignorant, poorly written and outright misleading Apple puff piece. You can write off this articles objectivity straight away when you consider that Chris Davies has written an article comparing the whole of Apple’s companies cash reserves against one small division of the other electronics companies worth?? There are so many other things wrong with this article and this trend of these types of articles but other comments have touched on it so I won’t rant on. And just to be clear, I use a mac at work and a self built PC at home and I’ve never had a an issue with this; each has their merits. I’ve never really got in on the fanboy/Apple vs PC business, however, I can start to see why PC guys get so worked up about Mac users; it’s because they talk so much misleading crap constantly.

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