Apple could in theory purchase a substantial chunk of the mobile phone industry. When the second quarter ends in a few weeks the company will reportedly have over $70 billion in cash kicking around -billion with a B.
According to analyst asymco, all those dollars are enough for it to swallow up a substantial chunk of its competitors. The enterprise value of the public companies that are selling 75% of the world’s phones are roughly:
Motorola Mobility $4.2b
Sony Ericsson $0.21b x 14 = $3.0b
Samsung $3.76b x 14 = $53b
In theory that means Apple could buy up almost all those companies except for Samsung with just the cash it has available. Obviously Apple isn’t going on a spending spree and buying everyone up, and its $$ are due to a lot more than just selling phones, but it is certainly interesting that is could swallow up the majority of the mobile phone industry if it wanted to. Apple’s position in the marketplace also continues to improve, while others decline. In a few years several of its competitors may be more affordable than they are now.
What do you think about Apple’s place in the mobile marketplace? Is it going to continue to head upward, or start to decline?