Why Would Apple Buy Loewe…
Submitted by lalit on May 13, 2012 - 5:56pm.
Yesterday, AppleInsider reported that Apple was negotiating to acquire German HDTV maker Loewe for 87.3 million Euros (about $122 million). However, today Loewe’s spokesperson said that there was “absolutely nothing to it”. But there are still rumors that Apple offered a deal to Loewe and their board of directors is yet to decide. Many believe that Apple is interested in Loewe because of their minimalist designs and premium market appeal.
However, we don’t think Apple will buy anyone for design or market appeal. As far as design is concerned, Apple has always depended on their internal design team led by Jonathan Ive. And as for market appeal, there is no bigger brand than Apple today in the world. So, why would they need Loewe?
We believe that if Apple buys Loewe, it will be for intellectual property (IP) and nothing else. Yes, they might use the engineers from Loewe for making Apple’s upcoming HDTV, but that isn’t the main reason for Apple to buy Loewe.
Apple will be entering a very crowded TV market with many big name electronic companies wanting to keep them out, as Apple is known to drain away all the profits from the market they enter. For example, in 2011 Apple took away 80% profit of MP3 player market, over 75% profit of smartphone market and over 80% profit of tablet market. And companies like Samsung, Sony and LG will do anything to keep Apple away from already drying TV market. So, if Apple has some IP backing from an old company like Loewe it will be that much better/easier for them to enter the TV market.
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