Another Day, Another Apple HDTV Rumor: Will Apple Buy Loewe?

By Tara Seals February 14, 2013

The Apple HDTV rumor mill got a decided bump this week when a trader was cited by Reuters as saying that “Apple supposedly wants to bid four Euros a share for Loewe,” the German luxury electronics goods brand. Loewe, among other things, makes HDTVs—fueling Apple TV speculation and a stock price jump of 23.16 percent for Loewe.

Loewe told Reuters that it was “unaware” of any offer from Apple, but the story is familiar. Last May, AppleInsider said that the company was interested in the German TV manufacturer, citing unnamed sources within the company. Loewe’s at the time denied any such negotiations, and the story was considered to be a red herring.

If it is indeed on the table, the acquisition would be a small one for Apple: Loewe’s market capitalization is only around $58.6 million, and it’s in trouble. The company is cutting 1,000 jobs and in the most recent quarter reported losses of $39 million.

That said, those losses are indicative of the tough road that luxury CE is experiencing in a down economy. Loewe makes Blu-ray players, DVD recorders, hard-disk recorders, multiroom systems, speakers and racks—but all of the ancillary products have not been enough to make up for softness in the high-end TV market—which is where Apple would play, should it choose to get into it. Shareholders could be convinced to take on the acquisition however should Loewe’s existing infrastructure and manufacturing footprint allow Apple to come into the market already at some scale—an obstacle many analysts see as an issue for the company’s HDTV prospects.

Apple would also need to wrangle shares away from Sharp, which owns 28.8 percent of the company (Loewe’s executives have 14 percent and hard-drive manufacturer LaCie owns 11.2 percent of the remaining shares).

For now the rumor remains simply that: a rumor. But as the Apple HDTV rumor mill continues to crank up in intensity, one wonders if there will soon be a payoff.




Edited by Rich Steeves

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Amid Cryptocurrency Mania, Coinsquare's goNumerical Raises CAD $10.5M

By: Paula Bernier    12/5/2017

The company that operates the Canadian digital currency exchange known as Coinsquare says it has raised CAD $10.5 million in new funding.

Read More

Your New Heart Monitor is an Apple Watch. Really.

By: Doug Mohney    12/4/2017

Looking at a new smartwatch or fitness wearable for the holidays? If you are concerned about your heart health due to family history or reason, Apple …

Read More

Amazon Unleashes Alexa for Business - Consequences Abound

By: Doug Mohney    11/30/2017

Today, Amazon Web Services (AWS) announced Alexa for Business, bringing Amazon's intelligent assist into the office. This shouldn't be a surprise to T…

Read More

Pai Makes His Case for Title II Repeal

By: Paula Bernier    11/21/2017

FCC Chairman Ajit Pai today made clear his plans to repeal Title II net neutrality rules. The commission is expected to pass his proposal at its Dec. …

Read More

Winners of the 2017 Tech Diversity Award Announced

By: TMCnet News    11/20/2017

TMC, a global, integrated media company helping clients build communities in print, in person and online, today announced the recipients of the 2017 T…

Read More