The main news of yesterday afternoon was, to say the least, relevant to the future of the Cupertino-based company. Qualcomm, supplier of microprocessors and other electronic components of Apple, has finally decided to reject the offer they have had on the table for the last few weeks, by the almighty Broadcom.
This offer offered an amount of $ 103 billion for the complete purchase of the North American manufacturer. If the purchase had taken place, the monopoly created would have jeopardized collaborative relationships, already damaged between rival companies.
Both companies, suppliers of components for Apple products, had been in talks for several weeks to acquire Qualcomm by the North American company. However, although the talks have not been concluded, it seems that this agreement will not be finalized.
However, since Broadcom they are optimistic. According to a statement leaked by Reuters, has ruled on the matter:
"We continue to believe that our proposal represents the most attractive and enriching alternative available to Qualcomm shareholders and we are encouraged by their reaction."
By contrast, Qualcomm has been almost offended by the simple idea that this acquisition could be produced:
"Broadcom dramatically underestimates Qualcomm and this move comes with significant regulatory uncertainty."
It should be noted that an action of this type would be one of the largest movements in history, and would face deep scrutiny by the competent regulatory media, especially because it would allow Broadcom enjoy near total market control, unprecedented so far on different technological devices.
Wi-Fi modules, Bluetooth, processors for a multitude of mobile devices, a multitude of sensors and other components, all supplied by the same company, without any competition, would pose a problem for the price of Apple supplies.
Whatever the outcome of this event ultimately may be, Apple could not only be harmed in some cases, but also benefit from both situations:
- On the one hand, keeping both providers separate would not increase market competition, so Apple could maintain its position and continue to gain market share.
- On the other hand, due to the open lawsuits that the company maintains with Qualcomm, if finally there was an acquisition, surely Broadcom he would back out of all open litigation to avoid losing one of his biggest clients.
We will see how events develop between these two great companies, and how the designs of both can positively or negatively affect Apple's near future.
