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.

Posted In: Gene MunsterPiper JaffrayAnalyst ColorNewsM&ATop StoriesExclusivesAnalyst RatingsTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.