The software giant has been offered by Foxconn to take over Sharp, which might be considered by the company for its own benefit in the long run.
The most recent news about Apple is about how Foxconn has made an offer to the software giant regarding making a huge buy of Sharp, which has been struggling in the stock market for some time. According to a report by Nikkei business, it was seen that Foxconn has shown interest in taking over the popular LCD business but has come around to have little capital for it.
Therefore, through an offer made to the iPhone makers, the company is making an effort to take over the business with shared capital from the tech giant. Now analysts are talking about why the tech company would want to accept the deal in the first place, and the only reason that seems to make sense is that it also uses the LCD displaying for its own gadgets, which is why it might think about accepting the deal.
The LCD business that both Foxconn and Apple business could think about buying has been going through a tough time regarding the money for a long time. Analysts believe that the iPod maker has many reasons as to why they should help the company to get back in its place. If it did not, the tech giant will have to suffer in the long run, as then it would have to look for other companies and suppliers to get the best LCD possible for the gadgets.
In 2012, when Sharp began to struggle, there were many analysts in the market, which suggested the software giant to take over the business. The firm, however, did not oblige and went its own way by not investing in the business that provided it LCDs.
Analysts now believe that Apple software giant is not in a position to let Sharp fall completely and it is likely that it might end up signing the deal with Foxconn anyway. Taking a closer look at the whole prospective of the iPod makers buying the firm, analysts have come to the conclusion that if Sharp regains its position in the market, it is positively going to affect all the companies related to it, including Apple and Foxconn in a massive way.
As per the analysis of financial executives in the industry, it is being said that Apple stock might be in a good position to accept the deal. Even though all of its revenue generation is later on spent in international ventures, it is possible that the firm sees the potential in the deal that all the analysts seem to be discussing.
Apple is believed to have shares valued up to $240 in an open letter written by Carl Icahn
In the most recent Apple news, it was seen that Tim Cook received a letter by Carl Icahn, one of the most dominant and influential businessman in the industry, in which he was congratulated for carrying out the business activities of the software company in such a successful manner. It was an open letter written by him in which he showed much positivity regarding the recent activities that helped the company obtain exceptional success and dominance over other firms of its kind in the industry. Icahn also declared in the letter that he believed that the stock of the iPhone makers was worth a massive $240.Analysts, on the other hand, believe that this expectation out of Apple stock by Carl Icahn is not to be right as his expectations are way above the line. It is to be believed that this price target is just something that has a very low chance of actually taking place. Therefore, analysts have declared that this should not make the investors too optimistic about the firm since it is very likely to not take place. Icahn seems to be a little too optimistic about the stock worth of the iPhone makers as per analysts’ analysis.Even though in his letter Carl Icahn has been persistent that he is being rational by thinking Apple is capable of such a share price, but analysts think that he is being a little too aggressive only because he is satisfied with how the firm is working. However, analysts only seem to agree with the predictions on the sales of iPhone which are expected to increase by 2.3 percent in 2016 and around 6.7 percent in the year next to that.Analysts believe that by saying that Apple will soon be starting the production and selling of its very own Apple TV and Apple car, Icahn is stating nothing new but supporting just a few rumors that are already been circulating in the air. Now going back to the history a little back, it will be seen that the firm has previously thought about working on a TV but only a year ago, the iPhone makers reportedly discontinued the work that was being done on it, as per a report by Wall Street.Analysts are of the opinion that Icahn is most probably going to be proved wrong since expecting Apple to launch something that it has not even been working on for the past year is actually not very smart and that it needs a bigger revenue generation than it already is obtaining to carry out such a task.
