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Rumor: Apple to Buy Israeli Company Anobit

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Halfway around the globe, rumors are flying that Apple (NASDAQ: AAPL) is preparing to buy Israeli flash storage technology maker Anobit for as much as $500 million.

The rumor comes courtesy of Israeli daily business paper the Calcalist. According to them, Apple's interest in Anobit stems from Anobit's ability to increase and enhance the memory volume and performance of its devices. Apple also already does business with Anobit, with Apple utilizing their chip that enhances flash drive performance through signal processing. The chip is already incorporated in Apple devices such as the iPhone, iPad and the MacBook Air.

This would mark a different strategy from other company purchases for Apple.

Apple typically buys software, not hardware companies. This could be a change in strategy for the company moving forward under the direction of new CEO Tim Cook, who took over for the recently deceased Steve Jobs in August. It is unknown if this trend will continue, or if this is a one-off purchase that was more of an opportunity purchase than a strategic change for the company.

The Calcalist said Apple is interested in Anobit's technology to boost memory volume and performance of its many devices. If calculations are correct, the Anobit chip could double the memory volume in the new iPads and MacBooks. Considering how well these devices already do in the marketplace, a purchase like this could really make sense for Apple.

ANobit also has other ties to Apple. Among Anobit's key clients are flash memory manufacturers such as Korean based Samsung and Hynix, Calcalist noted. Who are they to Apple? Well, Hynix is the main flash memory supplier for Apple's iPhone 4S. Anobit's chip is built into Hynix's flash drives and enhances the memory capabilities of the iPhone 4S.

ACTION ITEMS:

Bullish: If you think this move would be smart for Apple, considering their already existing partnership with Anobit, then perhaps investing in the company is the way to go.

Bearish: If you think Apple is overrated and purchases like this will drag down the tech giant the way they've dragged down other large companies in the past, then maybe it's best to stay far, far away from Apple. Throw in the death of Apple's cult leader this fall, and maybe this is the beginning of the end for Apple. Consider another software company that could fill its space, like Microsoft (NASDAQ: MSFT) or even IBM (NYSE: IBM). At this point, maybe even Blackberry-maker Research in Motion (NASDAQ: RIMM) could get its act together (thought that seems unlikely) and regain some of the smartphone marketplace, especially if Apple slips.

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

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