Apple has enough cash to buy all its mobile phone manufacturing rivals bar Samsung

By June 24, 2011Apple, Mobile

According to research out by Asymco Apple has just about enough cash to buy Nokia, RIM, HTC, LG, Motorola and Sony Ericsson.  That is an incredible statistic and testimony to the awesome success that Apple has had with its iPod, iPhone and iPad product ranges.  Regular readers will know that I am not a big fan of their (relatively) closed ecosystem model, but I stand back in admiration of their awesome execution.  Time after time they knock the ball out of the park with great product releases and to my surprise I find I am looking forward to the iPhone 5 coming later in the summer.

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Hat tip to Strategy Eye for the graphic and original article.

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  • Samsung is also their only serious threat. Like Apple they also have their own entertainment/computing stack – from smart phones and music players to TVs. Just imagine the havoc S could cause if they release their own version of Android.

  • Actually, no – Apple has enough cash to buy the “*estimated enterprise values* of its top rivals’ *mobile manufacturing divisions*”. Asymco calculated the enterprise value as a 14x multiple of trailing operating profits.. Profit numbers of individual divisions can be very misleading in a large corporation, as sometimes the way pricing or accounting is done serves a strategic purpose. For example, take Microsoft’s hugely loss-making internet division.. If it were run like an independent company perhaps it would cut back on its properties and reduce its losses, but the losses represent a (perceived) strategic investment by MSFT. To Google, they would be worth much more than the estimated enterprise value would suggest. 

  • Actually, no – Apple has enough cash to buy the “*estimated enterprise values* of its top rivals’ *mobile manufacturing divisions*”. Asymco calculated the enterprise value as a 14x multiple of trailing operating profits.. Profit numbers of individual divisions can be very misleading in a large corporation, as sometimes the way pricing or accounting is done serves a strategic purpose. For example, take Microsoft’s hugely loss-making internet division.. If it were run like an independent company perhaps it would cut back on its properties and reduce its losses, but the losses represent a (perceived) strategic investment by MSFT. To Google, they would be worth much more than the estimated enterprise value would suggest. 

  • Fair point Roham

  • Fair point Roham