Former General Electric CEO Passed on Buying Apple for $2 Billion in 1996

Former chairman and CEO of General Electric Jack Welch had an opportunity to purchase Apple for $2 billion and passed at the chance, according to information shared by Bob Wright in an interview with The New York Post about his book The Wright Stuff: From NBC to Autism Speaks.

Back in 1996, when Apple was struggling ahead of Steve Jobs’ return, then CEO Michael Spindler, who took over after John Sculley was ousted, was “practically begging” General Electric to buy Apple.

“The stock price was $20, and [Spindler] was explaining he couldn’t get the company moving fast enough and the analysts were on his case,” Wright told The Post in an interview on Tuesday. “He was sweating like mad and everybody said, ‘We can’t manage technology like that.’ We had a chance to buy it for $2 billion.”

A purchase by General Electric would have radically changed the company’s history and it’s questionable whether Apple would still be around as a brand today had that happened. Later that same year, after GE declined to make the purchase, Apple bought NeXT for $427 million and Steve Jobs returned to lead the company in 1997.

One of Jobs’ first major projects was the iPod, which launched in 2001 and set the company on its current path. The iPhone followed in 2007, the iPad came in 2010, and the Apple Watch, Apple’s newest product, launched in 2015.

As of today, Apple is worth more than $600 billion, while General Electric is worth less than half of that. In fact, Apple holds more than two thirds of the value of General Electric in cash, with over $215 billion on hand.
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iPhone 7 May Use New Packaging Technology for Antenna Switching Module to Save Space

Rumors have suggested the iPhone 7 will be thinner and lighter than the iPhone 6s, and a new report from Korean site ETNews shares some technical details on the methods Apple may use to save space internally and shave off precious fractions of a millimeter from the device’s size.

Apple is said to be planning to use a new fan-out packaging technology for the antenna switching module and radio frequency chip in the iPhone 7, which is a feature that allows the iPhone to switch between LTE and other antennas like GSM and CDMA. Fan-out packaging technology allows for a greater number of I/O terminals while cutting down on chip size.

A mockup of what the iPhone 7 might look like

Fan Out technology is a technology that increases number of I/O (Input/Output) terminals within a package by pulling out wiring of I/O terminals to outside from a semiconductor chip (Die), which is a previous step before packaging. As area of a chip had become narrower as manufacturing processes had become finer, it was difficult to increase number of I/O terminals. Because industries do not want to increase size of a chip just for I/O terminals, they have been paying attention to Fan Out Packaging technology recently. It is most cost effective from production cost perspective if number of I/O terminals increases within a package while still decreasing size of a chip.

Using this packaging method, along with single-chip EMI shields, Apple will be able to fit more components into a single package while minimizing signal loss and also cutting down on the potential for interference in wireless communication. The radio frequency chip built into the antenna switching module is said to include two chips in one package rather than two chips built into a printed circuit board to save space.

Apple’s iPhone 7 is expected to launch in the fall of 2016. Rumors about the device suggest it will look similar to the iPhone 6s, but with redesigned antenna bands and a somewhat thinner chassis. Along with the chip packaging techniques shared today, Apple is rumored to be cutting down on the size of the device through the removal of the headphone jack and the slimming of the Lightning port.

Related Roundup: iPhone 7
Tag: etnews.com
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