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

Related Articles

Death by Hedge Funds: Why Samsung is Run by Idiots and They Aren't Alone

By: Rob Enderle    10/12/2016

Samsung is certainly having a bad quarter. First their halo product the Samsung Galaxy Note 7 starts blowing up or catching fire and they attempted th…

Read More

Addressing the Third Party Threat: Five Financial Industry Takeaways from the SWIFT Hack

By: Special Guest    10/12/2016

It has now been several months since more than a dozen financial institutions associated with the Society for a Worldwide Interbank Financial Telecomm…

Read More

The Impact of Virtual Reality's Mainstream Evolution

By: Special Guest    10/12/2016

As virtual reality becomes more prevalent in both a business and personal setting, less expensive equipment is becoming more obtainable. This increase…

Read More

Google's Losing Temperament Won't Help With Phones

By: Doug Mohney    10/11/2016

For all of Google's strength in search and huge amounts of cash, it really has struggled to be a success beyond its core business. Last week's release…

Read More

Next-gen Workers: Stay Connected with Facebook's Workplace

By: Alicia Young    10/11/2016

In today's connected, mobile world, it's likely that you or someone you know works remotely. I'd be willing to bet that a good number of people at you…

Read More