Perhaps Apple has some truly innovative aspect to the TV business that the current -- or a future -- separate $99 Apple TV box can't somehow accomplish. Some of these arguments were also speaking against Apple entering the smartphone business in 2007, so you can't be sure.
TVs require fortunes of working capital, as well as store shelf space. They are costly to deliver and install as necessary. Why would Apple go through that sort of pain, when a box and an HDMI cord can give the user seemingly all the benefits anyway?
Now, contrast the pain and low margins of the TV set business with Apple acquiring Tesla. What are the ways Apple could add value to the car, that is difficult to do in an arms-length scenario? I don't have the space to go through them all in detail in this article, but consider the following bullet points:
Yes, some of these advancements will surely continue to happen even in an arms-length scenario, but does this look any less logical than the TV business?Consider these signs and arguments for Apple acquiring Tesla instead:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV