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TheStreet Open House

Apple Reportedly Flashes Cash for Anobit

Stocks in this article: AAPLFIO

NEW YORK ( TheStreet) - Apple (AAPL) has reportedly "flashed its cash," by buying flash memory company Anobit for a supposed price of somewhere between $400 million and $500 million, according to Israeli-based newspaper Calcalist.

Apple continues to integrate companies into its supply chain by adding strategic and vertical companies to keep operating margins high. Anobit's flash memory chips are already in use in Apple's iPads, iPhones and MacBook Airs. Apple already produces its own processor chips for the iPhone and iPad.

Apple reportedly has closed its deal to buy flash memory maker Anobit.

The Twitter account of the Israeli prime minister wrote a tweet welcoming Apple to Israel. "Welcome to Israel, Apple Inc. on your 1st acquisition here. I'm certain that you'll benefit from the fruit of the Israeli knowledge," the tweet said.

Apple is reportedly going to release the next version of the iPad and iPhone next year and may be looking to secure flash memory parts via the Anobit acquisition.

RBC Capital Markets analyst Mike Abramsky wrote in a research report last week that "Apple likely sees flash memory performance and speed as crucial to user experience in the post-PC era."

If the purchase price is true, this is Apple's largest acquisition to date, and is a potential sign that new CEO Tim Cook is more amenable to spending Apple's large cash hoard than Steve Jobs was. Cook has previously said he is "not religious" about holding cash.

At the end of last quarter, Apple had more than $81 billion in cash and marketable securities.

Apple's largest acquisition previously was NeXT Computer for $404 million, which brought Jobs back to the company he co-founded.

Apple did not respond for comment on this story.

Shares of Apple were rising in early Tuesday trading, up 1.2% to $386.75.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.

>To submit a news tip, send an email to: tips@thestreet.com

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