Munster Says Apple Prefers Competition Rather Than Acquisition Of Fitbit, GoPro

The debate continues to rage on Wall Street about what Apple Inc. AAPL could/should/will do with the hundreds of billions of dollars in cash in continues to generate.

While each analyst and shareholder seems to have his or her own opinion about which companies Apple will buy, Piper Jaffray analyst Gene Munster told Benzinga an Apple buyout of two specific young tech companies is likely out of the question.

According to Munster, the trend away from phones and toward wearables is likely to continue over the next decade. For Apple, that means focus on virtual and mixed reality technology, which is extremely capital-intensive.

Despite the growth in wearables, Munster does not believe a buyout of Fitbit Inc FIT is in the cards because Apple already has access to the “same technology” as Fitbit and would likely “run them out of the market before they buy them.”

Related Link: RBC: Apple Now Worth Just $130, We're Lowering March And June Estimates

In addition, Munster sees camera maker GoPro Inc GPRO as an unlikely Apple buyout target. Not only has the camera business historically struggled (Eastman Kodak and Polaroid), Munster sees more value in GoPro’s brand than its technology. “Apple already has a brand name,” he concludes.

Munster sees Tesla Motors Inc TSLA as a much more likely Apple buyout candidate in the near future.

Disclosure: the author has no position in the stocks mentioned.