Apple’s share price: Acquisition of motion sensor maker PrimeSense

on Nov 25, 2013
Updated: Oct 21, 2019
Listen Monday, November 25: Apple (NASDAQ:AAPL) has bought PrimeSense, an Israeli tech company known for developing the motion-control for Microsoft’s Kinect device, in a deal that will spark fresh speculation about the iPhone maker’s plans for the living room.

After months of chatter about a possible acquisition, Apple spokeswoman Kristin Huguet confirmed the purchase yesterday in a telephone interview. Bloomberg quoted a person familiar with the matter as saying that Apple and PrimeSense were negotiating a deal for about $350 million (₤216 million). “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans,” Huguet explained.

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Tel Aviv-based PrimeSense’s technology uses sensors and cameras to understand the depth of objects in a 3D space. It can be used to create an alternative to a controller for video games or a remote control for televisions. The Israeli company has also been making advances in depth-sensing technology that allows for a 3D camera in a mobile phone to enable apps like indoor navigation tools or 3D shopping catalogues. The firm has also launched a 3D scanner which, it says, allows “anyone to scan items in their own environment and print them out on a 3D printer”.

PrimeSense was founded in 2005 by five partners, mostly from a defence background. The company’s investors include Silver Lake, Canaan Partners, Genesis Partners and Gemini Israel Funds.
Apple, the world’s most valuable technology company, has not used much of its $130 billion (₤80.2 billion) in cash, net of debts. In October, chief executive Tim Cook announced that Apple had bought 15 companies in the financial year ending in September. One recent deal of a similar size to PrimeSense was executed in July 2012 when the iPhone maker acquired Florida-based AuthenTec, which made fingerprint-scanning technology, for $356 million (₤220 million). The technology was then implemented in the iPhone 5S, released two months ago.

Apple this year also acquired navigation-software company Embark, location based data company Locationary, online transit-navigation service and WifiSLAM, which makes location-identifying technology for when a smartphone user is inside a building. The tech giant also bought Israeli company Anobit last year to obtain flash-memory technology.

**Analysts on Apple**
Susquehanna reaffirmed its ‘positive’ rating and $625.00 price target on Apple’s shares in a note sent to investors last Monday. “Our note outlines what our checks suggest thus far regarding the features we believe are likely to be incorporated in next year’s iPhone 6, and the implications for AAPL and their suppliers. Given the larger screen size, we think there’s the potential for AAPL to raise the price point for a larger screen iPhone 6 in order to mitigate the impact on margins that would otherwise result from a rising bill of materials cost (which occurred during the iPhone 5 launch),” the analysts said in their report.

Two investment analysts rate Apple’s shares as a ‘sell’, 11 assign them a ‘hold’ rating, 39 call them a ‘buy’ and three give them a ‘strong buy’ rating.
**As of 07.30 UTC buy Apple shares at $519.80.**
**As of 07.30 UTC sell Apple shares at $519.59.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.
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