Shaw Wu of Sterne Agee this morning writes that the rumored acquisition of Israeli memory chip technology designer Anobit this week by Apple (AAPL) is “an intriguing and smart move that is also consistent with what AAPL has been doing, which is to own more of the intellectual property with its vertically integrated strategy.”
Various accounts yesterday said Apple had purchased the Israeli company for $400 million to $500 million, citing anonymous sources.
Wu, who maintains a Buy rating on shares of Apple, writes that his own sources indicate to him the company views the controller chip technology for NAND flash that Anobit was developing as a key technology, writing “AAPL views core ownership of flash controller technology as essential in helping it derive advantages in the mobile device space with increased speed, improved battery life, and potentially even a cost advantage.”
Wu also adds the observation that Apple could conceivably use such controller technology inside its iTunes data center, to speed up its own server computer performance for delivering content to all the connected devices.
“We believe enterprise flash controller technology can help out in build differentiation in its cloud services offering.”
Wu maintains a Buy rating on Apple shares and a $500 price target.
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