I really think they should buy ARM. People say there would be a conflict, but ARM licenses architecture and designs, rather than selling chips, and the existing licensees would surely continue, and there's nothing stopping apple from selling new licenses. But having the ARM design team available to task for custom designs for apple (to be licensed as well to others, or not) would be worth about $8B, in my opinion. (given the size of the iOS market already.)

The rest of those are bad choices for Apple. Apple is what it is because it focuses. I think none of those companies are in Apple's focus.

However, Apple could buy Clearwire- Clearwire has very valuable spectrum licenses in the USA. This might be justified, but since Apple is a global business, it isn't a slam dunk, as whoever controls WiMax spectrum internationally would need to be contended with. On the third hand, they could use that spectrum to create their own LTE network in the USA, and still have enough spectrum on the side to create a parallel high bandwidth data-only network.

Hmmm.... Clearwire's market cap is $1.6B. They might need to buy sprint too (and then spin out the telecom business) to get full rights to the clearwire spectrum. (not sure about what the agreement is.)

Netflix is a great company with great management. But the streaming rights won't transfer thru an acquisition, I'm pretty sure. However, giving netflix a spot in the iTunes ecosystem seems like a good deal, maybe take an equity stake in the process, sure.

EA- no need to buy them, balloons headcount, very different business. EA will either put out the apps for Apple's devices, or other companies will beat them to it. Apple's in a strong position.

I'm not sure about Cablevision.

I think Apple should buy Adobe, though. I'm sure they still have some talent left, and owning what's left of the desktop software market would be good for Apple.... but that is a "mac primacy" play, and I think Steve and the rest of Apple is focused on iOS exclusively, so I'm sure they won't buy Adobe.

PS-- I realize your point was that they have the capital to buy all those companies if they wanted to, but I'm looking at it as a shopping list.

I'm pretty certain Apple has plans for the $51B. They could spend some of it buying back their stock, or as a dividend, but both of those are non-growth company strategies, essentially giving the money to investors and saying they can't manage it well.

I think Apple has its eye on some very big opportunities.

I think one of those opportunities is putting $10B-$20B into a vertically integrated automated manufacturing facility.

They cannot continue to scale their business on the backs of foxconn. At some point, this is becomes the biggest inefficiency, even though Chinese labor is inexpensive, it won't always be, and when it becomes as expensive as korea or singapore or even japan, where will foxconn move?

I think pure automation is the solution. Foxconn needs to be able to build anything, Apple just needs to build the products it desgins. There is a position to squeeze a lot of cost out.

And the other argument? Apple did it before. The Macintosh factory was a wonder of its age, and extremely automated. IT was designed along with the macintosh.

I think Apple is learning from foxconn, but eventually will need to build their own manufacturing base. Simply because you cannot keep doubling your device numbers forever.... foxconn will still build a lot of stuff for apple, but I'm waiting for Apple to take over a chunk of it.