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

By

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

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More