SeekingAlpha argues that Apple should alienate and compete with it’s main suppliers of processor chips and one of their suppliers of graphics processing hardware in a method to incrementally increase profits.
With Advanced Micro Devices’ (AMD) stock price deteriorating, could Apple (AAPL) be its white knight?
The 10 reasons and most apparent advantages of this acquisition are:
The best one to round out the 10 is “Keep AMD American”.
Sure, buying AMD would have the free bonus of having ATI too. But it would completely alienate NVIDIA and Intel – neither of which is desirable. Apple currently has the luxury of competing suppliers. Intel vs AMD. ATI vs NVIDIA and though they only use Intel’s processors, their hardware uses a mix of ATI and NVIDIA graphics. If they bought AMD they’d be locked into using AMD processors and ATI chips because they’d be insane not to.
No.
The argument on seeking Alpha makes sense from the point of view of eking tiny margins but no actual business sense (where business is defined as the art of maintaining mutually beneficial financial relationships.)
And frankly, the xenophobic, insular attitude of keeping AMD American adds further hubris to the whole argument.
Whatayaknow – anonymous Author.