Comments from Apple CEO Steve Jobs this week suggested that the cash-rich computer and phone maker might be in a good position to start snapping up struggling tech companies. During Apple's earnings call Tuesday, Steve Jobs proudly reported that Apple had $25 billion “safely in the bank" -- and zero debt. More interestingly, he said he saw a bright side to the economic meltdown.
This downturn may also present some extraordinary opportunities for companies that have the cash to take advantage of it.
Steve Jobs-CEO Apple
The obvious opportunity given the country's state of financial ruin is for Apple to swoop in on smaller companies while they're vulnerable and cheap. But with the iPhone netting $4.6 billion in revenue this quarter, making Apple the world's third-largest mobile supplier, it's difficult to imagine what exactly Apple would need to acquire.
The company is flush with cash, has a solid lock on the suppliers and wireless carriers it depends on, and has plenty of talent on its payroll. Plus, many of the obvious acquisition targets on the market now (such as Dell or Yahoo) are stumbling commodity vendors with no clear direction and a dubious track record of innovation, especially recently -- not exactly Apple's kind of companies.
So if Apple is going to make acquisitions, where is it likely to focus its attention in the coming year?
Wired.com spoke to three financial analysts who were each stumped by the question. In the past, the vast majority of Apple acquisitions have been software-related. And given the huge success of not only the iPhone, but Apple's popular MacBook line as well, it doesn't appear the corporation needs to absorb any of the smaller companies that provide hardware components.
Here's a rundown of some possibilities.
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