Apple Inc's Newest Buyout: What Investors Need to Know

Trying to predict what tech giant Apple (NASDAQ: AAPL  ) will do next is almost a matter of sport for tech investors and analysts.

One of the best ways to gauge Apple's plans is what Apple does on the acquisition front. And in that vein, Apple just pulled the trigger on another buyout that reflects some likely changes to come for future Apple products.

Apple buys LuxVue Technologies
Although it prefers to play such moves as close to the vest as possible, Apple recently reached a deal to purchase next-gen LED producer LuxVue Technologies. The company's technologies and intellectual property could and should enable Apple to increase its iDevices' screen brightness and power efficiency at the same time. More broadly, this move fits with Apple's laser-focused acquisition strategy, in which it tends to purchase small but powerful technologies.

Apple's buyout strategy also has some defensive elements to it. In snapping up promising new technologies, Apple also keeps those same possible product improvements from finding their way into competitors' devices, which can create critical competitive advantages for Apple's devices in the eyes of consumers.

In the following video, tech and telecom specialist Andrew Tonner argues that its LuxVue buyout is simply the latest example of this highly successful strategy at work for Apple, which is why Apple investors should love it.

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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