Here’s the deal. For all of Apple’s riches, and there are plenty, the company cannot seem to escape dealing with Samsung. Sure, Apple’s iPhone and iPad continue to plaster Samsung’s not-that-smart phones and tablets in the marketplace, but where does Apple gets its chips?
Apple is funding a competitor. So, here’s what I’m thinking. Let’s buy Samsung and sell it to Apple. Or, assuming Samsung doesn’t really want to sell itself to the highest bidder, buy a few chip fabricating companies and run them exclusively for Apple so they don’t have to give cherished profits to Samsung for chips.
We could do it. All we need is a collective response to my idea and then figure out a way to make the math work. Crowdfunding works this way. A bunch of people put a little money into a pot to support an idea to build a new product or a business. Think IndieGoGo or Kickstarter. For example, Apple has somewhere on the order of 700-million customers (Macs, iPhones, iPads, etc.). A simple and even $10 contribution from each one would fund a $7-billion project. That’s enough for a couple of auto factories or a modern chip fabrication plant or two. An even $100 contribution pushes the crowdfunding total to $70-billion.
Not bad, but not enough. Samsung’s market cap is just under $200-billion. So, our crowdfunded $70-billion and Apple’s $130-billion of cash should just about do the trick, right?
Yeah, I know. There are lots of problems with this idea, not including the math. Apple already has so much money it doesn’t know what to do with so it’s giving it away, buying back stock, issuing dividends and all those things that indicate a lack of creativity among executives and board members.