Really? Apple should acquire AMD?

AMDAlthough he knows “it sounds way too radical to be taken seriously,” Gundeep Hora at CoolTechZone.com nonetheless thinks Apple should make a strategic acquisition of processor-maker AMD.

AMD is the world’s second-largest supplier of x86 based processors, after Intel, Apple’s current supplier.

However, Apple could drop Intel altogether and adopt AMD for its Macintosh PCs. Sure, the transition is going to take sometime, and it would probably make Apple announce a brand new line of PCs. However, it will be well worth it.

Unfortunately, Hora neglects to explain why it would help Apple much. Unless you can make sense of this:

In the meantime, Apple could have AMD deal with HP, Dell and a slew of its current customers without a direct conflict of interest. Hey, it’s better than HP buying AMD and Dell having to go to HP for getting AMD chips, or vice versa. AMD acquisition by Apple makes perfect sense in as much of a non-threatening way as possible to Dell, HP and others.

Um, yeah, perfect sense. Because Apple is always concerned about being non-threatening to Dell, HP and other computer manufacturers, right?

Another benefit that Apple will reap out of this (other than adding another revenue stream) …

Wait a minute… Apple would spend money to buy AMD, which just last quarter lost $611M… And where’s the new revenue stream, exactly?

… is to have complete control over its hardware from a cost standpoint. If it can convert Macs to AMD and ATI chips, all the key components are being developed in-house. Talk about increasing margins. Apple could either squeeze out higher margins-per-PC to lower the cost-per-Mac to allow for affordable switchover from Windows or improve its bottom line directly. Regardless of which way you cut it, Apple is going to be a winner in all of this.

Unless the acquired AMD is unable to keep up with Intel and Apple once again has slower computers on the market than its Windows-based competitors.

Of course, maybe I shouldn’t be surprised by this article, seeing how it’s from the same author who just last week wrote that the price of the iPhone would NEVER drop because Apple never dropped the price of the iPod. (Hint: $399 to $249 constitutes a drop!)

Why Apple Should Acquire AMD

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