10 Reasons Why Apple Should Acquire AMD

Includes: AAPL, AMD
by: Tech101

With Advanced Micro Devices' (NASDAQ:AMD) stock price deteriorating, could Apple (NASDAQ:AAPL) be its white knight?

The 10 reasons and most apparent advantages of this acquisition are:

  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;
  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;
  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;
  4. Intel (NASDAQ:INTC) will gain a more balanced competitor, which is healthy for the entire semiconductor industry, and even Intel may benefit from it;
  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;
  6. It reduces cost for Apple and improves its profit margin;
  7. It is not technically difficult since Apple has already worked out with Intel CPU;
  8. It is cheap. AMD spent $5.4 billion alone to acquire graphics chip company ATI mostly by cash in June 2006;
  9. The government will be glad and the deal won’t face challenge by government regulation of monopoly and competition policy;
  10. It will keep AMD American.

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