Article Review: Apple buys mobile security firm AuthenTec for $356 million
This article regards the acquisition of a fingerprint sensor by the Apple Company from the technology developer Authen Tec. The article reveals that the technology can be used in individual computers and mobile appliances. This essay provides a review of the plans to acquire the fingerprint sensor from its manufacturer at the price of 356 million dollars.
In the introduction, the article provides a preview of the price of the shares that Apple agreed to purchase the fingerprint sensor. The article reveals that the fingerprint sensor manufacturer agreed at $8 per share. At this price, the article says that Apple gets 58% of the company shares, but still expects fierce competition from its fierce rival, Samsung Company.
The article also clarifies that the Apple company rarely acquires other firms, unless if the acquired is a start-up. The main rationale is to have a cutting edge technology. Additionally, the article provides a preview on the history of the Authen Tech. Furthermore, the article also reveals that the company was incepted in 1998 and went communal in 2007. The company provides mobile security services and fingerprint sensor equipment.
The article also asserts that, through the acquisition of this technology, apple will provide a tactical, competitive strategy to its fierce rival, Samsung, which does both mobile phone manufacturing and provides sensor technology security. From the article, it is also said that Apple will share the technique with other markets in USA; there have been slow mobile wallet technology in this region.
Moreover, the article provides analytical criticism on the offer price of the Authen Tech shares by revealing that the price was not competitive enough, and that Apple Company might soon find rivalry from Google and Samsung Companies since the deal terms allows the manufacturing company to consider unsolicited bids.
Reference (article source)
Carew, S., & Gupta, P. (n.d.). Apple buys mobile security firm AuthenTec for $356 million|
Reuters. Business & Financial News, Breaking US & International News | Reuters.com.
Retrieved July 28, 2012, from http://www.reuters.com/article/2012/07/27/us-authentec-
acquisition-apple-idUSBRE86Q0KD20120727
