Apple Stock News: Apple Backs Foxconn to Buy Chip Business

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.93 on Monday, June 5th, 2017. It had a loss of 0.98% from its previous close of $155.45 per share.

Apple and Amazon are reportedly teaming up with Foxconn in its bid for Toshiba’s semiconductor business, according to Foxconn Chairman Terry Gou. This unit is the world’ second-largest NAND chip maker. Specifically, Foxconn’s bid for the business has a valuation of $18.2 billion. Foxconn is a multinational electronics contract manufacturing company with its headquarters in Taiwan.

Apple and Amazon have provided financial backing for the bid, though whether it was in the form of a direct investment in the business or financing for the deal is undisclosed. In particular, Foxconn is a major supplier to Apple. For instance, the company provides electronics components and device parts Apple products such as the iPhone. Moreover, Toshiba’s NAND flash memory chip business produces chips suitable for smartphones and cloud computing data centers. This aspect can explain Apple’s interest in backing Foxconn’s bid.

If the deal goes through, this can be an opportunity for Apple’s smartphone and cloud computing businesses. Foxconn’s chairman is reportedly very confident about securing the deal. However, there may also be political complications due to Foxconn’s ties to China, which may not be favorable in the eyes of Japanese regulators. On a positive note, with US technology giants, Apple and Amazon as backers of the deal, their presence may move the Japanese government to reconsider interference.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Comments are closed.