Cupertino-based electronics firm Apple Inc. (NASDAQ:AAPL) bought a small company, LuxVue Technology, for an undisclosed amount, and confirmed the purchase to Re/Code in a minimalist memo to the Apple news site. LuxVue is a manufacturer of micro-LED displays, raising speculation that the move is intended to bring additional manufacturing clout directly under Apple’s control, perhaps in an effort to gradually sever ties with Samsung, Inc., which currently fabricates many Apple components.
Another possible motivator for the purchase is revealed by VentureBeat, which reported that LuxVue may be behind development of Google Glass’ next generation. LuxVue certainly did something noteworthy to attract $43 million in funding for expansion. If the company is key to certain Google Glass developments, Apple (AAPL) might also want to acquire it to put a spoke in the wheel of its rival, Google Inc. (NASDAQ: GOOG).
Micro LED technology is a new field of display science which could eventually displace OLED displays. The technology involves the use of extremely small form factors, and has several major advantages. While using less energy, thus noticeably increasing the battery life of mobile devices using a micro LED screen, the display provides 3,000% more brightness relative to OLED. Suggestively, this technology is well suited to small displays such as those found on wearable devices – perhaps including the rumored iWatch.
LuxVue Technology may be a valuable acquisition for Apple Inc. (AAPL) due to its intellectual property, as well. The company filed no less than eight patent applications in 2013 and 2014. These patent applications are all related to micro LEDs or micro devices, and go into considerable technical detail. Whether the California tech giant is planning to develop its own micro-LED displays or use those of LuxVue, the patents represent an invaluable resource.
The purchase appears to be part of an ongoing scheme of carefully chosen acquisitions that Apple has been pursuing for nearly a year now. This push to buy up smaller companies has been clearly acknowledged by Tim Cook, which stresses that although the firm is “on the prowl” for purchasing opportunities, only companies that will bring true value to Apple are being bought.
Apple Inc. (AAPL) has a large pool of cash available, thanks both to its retention of profits and its recent bond sales. Major refocusing and expansion of the company’s operations are clearly underway, but what the ultimate outcome will be is still uncertain, and Apple remains typically close-mouthed about its goals.
