Tomahawk, WI 11/25/2013 (BasicsMedia) –  Apple Inc. (NASDAQ:AAPL) understands the increasing challenge in its business environment. The company has been faced with declining sales for its tablets and smartphones due to growing competition especially in key markets such as China. However, the company not only has huge potentials to continue growing and putting back real value to investors, it is also reinventing itself with innovative products.

The company is rumored to be working on iWatch to rival Samsung Electronics Co., Ltd. (KRX:005930)’s Galaxy Gear. Apple Inc. (NASDAQ:AAPL) is also working on iTV. Now that the company has acquired PrimeSense, an Israeli sensor maker, it is all clear that the Cupertino-based company is spoiling for an all out technology war with rivals.

Apple Inc. (NASDAQ:AAPL) needs to acquire captivating technology to help it combat the challenge presented by Samsung Electronics Co., Ltd. (KRX:005930) in the smartphone devices. The company is also seeking to redefine the world of television and acquiring PrimeSense is expected to help it offer devices which can turn gestures into command on the screen. This is something that will sure excite the tech market. But to AAPL it will be doing the ordinary thing as the company is known to take the market by surprise in terms of innovative technology.

PrimeSense worked with Microsoft

Microsoft’s Xbox 360 initially launched on PrimeSense technology which gave it a milestone. Today Microsoft works on its own technology but PrimeSense remains a next-gen tech provider.

AAPL is reported to have invested more than $360 million to acquire PrimeSense so that it can sharpen its innovative edge. As a tradition, the Cupertino company doesn’t discuss their plans or purpose for the acquisition which the make like in the latest case of PrimeSense, nonetheless, the company from time to time buys startups that in doing this, it has remained one of the top players in smartphone and tablet devices market.

It’s been a long pursuit for AAPL

The significant role that PrimeSense is expected to play in AAPL’s technological development can be seen in the length that the company has been pursuing the deal with this Israeli tech firm. Adding PrimeSense to its list of acquisitions this year is a celebrated achievement for AAPL considering what it stands to gain with the cutting-edge sensor technology which the company possesses.

It is not the first time that AAPL is acquiring a promising Israeli company. It purchased Anobit, a high-end flash memory controller supplier, at the value between $400 and $500 million. Looking at the dynamic tech market where customers’ thirst for high performance devices remains, I expect AAPL to continue digging into its cash reserve for more acquisition through 2014.

AAPL has been building cash reserve

The maker of iPhones has not been very aggressive in acquisition in 2013. The company has been studying the market and building cash reserve. The company has also been cutting down on cost while seeking to grow revenue and improve its bottom line. It thus goes without a doubt that the acquisition of PrimeSense us just the tip of the iceberg on what Apple Inc. (NASDAQ:AAPL) is planning to do for the next several months or quarters to boots its standing which has suffered from competition and slow economy.

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