News of the deal that was finalized on Friday and was first reported by the Israeli business news site Calcalist, which claimed that Anobit’s management was in the process of informing its staff to formally announce the acquisition by Apple and that they were on their way to being employed by the iPhone maker. The deal, noted Calcalist, is between $400 million to $500 million range.
In fact, if it is true, that would make it Apple’s most pricey acquisition ever, behind NeXT, the company Apple co-founder Steve Jobs started after getting the boot from Apple in the mid-1980s. Apple later bought NeXT for $404 million, 9to5Mac noted.
Anobit’s mobile storage. (Credit: Anobit)
Apple does not confirm suppliers, but Anobit’s flash storage technology is reportedly being embedded in Apple’s iPhone, iPad and MacBook Air to store data: it gives high-speed access but because it has no moving parts, unlike a magnetic hard drive, it is immune from knocks and magnetic fields. But such SSDs–solid state drives–are pricier and are a comparatively young technology.
An Anobit chip is already incorporated in Apple devices such as the iPhone, iPad and the MacBook Air, above. Photograph: Finnbarr Webster / Alamy / Alamy
Anobit has developed a novel technology that enhances flash drive performance through signal processing. The startup also delivers enterprise storage solutions. The chip may double the memory volume in the new iPads and MacBooks.
As a matter of fact, over the weekend, Calcalist reported that Apple showed its desire in Anobit’s technology to increase and enhance the memory volume and functionality of its devices, since it will now procure its memory at cost, rather than be forced to pay a premium to a third party. What is more, one of Apple’s arch rival–Samsung–is also an Anobit customer.
According to Robin Haris of ZDnet, who has earlier had a discussion with Anobit’s chief executive Avraham Meir–stated that the firm has developed systems which improve the stability of flash memory.
“Anobit designs controller chips that make flash behave,” Harris wrote. It adds reliability, accuracy, endurance and power consumption improvements to standard flash systems through its proprietary controller chip.
Further describing the Anobit acquisition as “Apple’s biggest hardware bet ever–and it is a good bet,” Harris said it would give Apple “an all-powerful competitive weapon that can be used to both reduce costs and/or increase performance, while increasing product quality in terms of reliability and battery life”.
But before we make a conclusion by ourselves, it is worth noting that neither Apple nor Anobit has confirmed the acquisition. In fact, the companies have not even made slightest indication if they were discussing a deal. But, based on the past history, Apple has never openly discussed many of its acquisitions, and the company did not respond to a request for comment about Anobit.
Moving forward, the Israeli prime minister’s Twitter account, operated by new media director Eitan Eliram, congratulated Apple this morning on its first acquisition in the country.
“Welcome to Israel, Apple Inc., on your 1st acquisition here,” the prime minister’s office tweeted. “I’m certain that you will benefit from the fruit of the Israeli knowledge.”
Nevertheless, this proposed deal is also noteworthy because Apple rarely makes a non-software purchase. In the past two decades, Apple has only bought four hardware companies, including NeXT, P.A. Semi, Raycer Graphics, and Intrinsity.
Anobit, founded in June 2006, has 200 employees. Anobit also owns a total of 95 patents. At present, Apple is waging patent battles against Samsung, HTC, and Motorola around the globe. Yesterday, the International Trade Commission ruled in its favor on one particular Android-related HTC patent, but experts claim the victory is limited in scope.