Apple to Buy AMD?

Not so long ago, an alleged meeting between AMD and Apple executives got the web spinning around the idea that Apple might use AMD processors. Why not? It’s a hassle on the design side, but it might be worth it financially. Today, Rob Enderle reportedly went further and suggested that “If Apple were to dump Intel, it might actually be in the market to buy AMD”, eCommerce Times reports. “AMD is relatively cheap,” he said, “and Apple could afford to buy it.” Rob Enderle adds.

AMD might be cheap, but I disagree that this would be a good reason for Apple to buy the processor maker. Apple already negotiates its prices vigorously and could simply escalate a price war between Intel and AMD for the Mac business if it wanted to. The alleged recent meeting was possibly designed exactly for that…

One argument in favor of an AMD acquisition is that Apple already designs its custom A4 processor. True, but Apple doesn’t have to deal with managing foundries that manufacture the chips – they outsource that stuff. The foundry business is a low-margin business that Apple would rather stay away from, and don’t forget that AMD turned a profit only recently.

In the end, what’s the added value in having Apple own AMD? None – unless they can turn the tide in the AMD-Intel war. 

Hubert Nguyen
Categories: Apple