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Great Acquisition for Apple

|Includes: Apple Inc. (AAPL)

While many have been crying for Apple to institute a dividend, it got busy doing what I believe is the more prudent thing to do with idle money, re-investing it. Rumor has it that Apple has made an unorthodox play into the hardware industry by acquiring Anobit, the flash-device manufcturer. Apple has traditionally focused on software acquisitions in the past, but this potential $500 million dollar investment is probably its best yet. 

Because flash drive devices are integral components to Apple staples like the iPad, iPhone, and MacBook Air, Apple is the largest consumer of Flash memory in the world. Anobit makes Multi-Level Cell flash based solid-state drives. The technology is cheaper than the standard SIngle Level Cell drive and could potentially double the memory capacity. Buying Anobit makes complete sense. Why be the customer, when you can be the owner? Owning Anobit allows Apple to exercise full control of the design and manufacture of a critical component in its devices. With this acquisition, Apple is no longer at the mercy of Anobit's abiity to keep up with orders. Furthermore, Apple can gain a competitive edge against rival Samsung, which was a significant customer of Anobit.

It's nice to see Apple use their hoard of cash to continue the growth story. There will always be those crying for a dividend, but as the old saying goes, "it takes money to make money," and I'm expecting this $500 million to make plenty more!