Bookmark and Share


Late last month Apple announced rather significant increase in its capital expenditures for the ongoing fiscal year without doing a lot of explanations. As it now appears, whopping $10.5 billion will be spent to acquire various manufacturing equipment, including assembly robots. Given the amount of money to be invested, it is likely that the company is not only expanding production capacities, but getting ready for new product introductions.

Apple anticipates to utilize approximately $11.0 billion for capital expenditures during fiscal 2014, including approximately $550 million for retail store facilities and approximately $10.5 billion for other capital expenditures, including “product tooling and manufacturing process equipment, and corporate facilities and infrastructure, including information systems hardware, software and enhancements”. By contrast, in FY2013 the company spent $7.0 billion during 2013, consisting of $499 million for retail store facilities and $6.5 billion for other capital expenditures

According to Bloomberg news-agency, $10.5 billion will be spent on production equipment that will be installed in facilities run by such companies as Foxconn Electronics and Pegatron as well as others. It is highly likely that the tools will be installed into facilities located in different parts of the world, including China and the U.S.

Keeping in mind that next year Apple is expected to further broader the lineup of its products by adding new smartphone designs, a new iPad design as well as launch Apple TV and Apple iWatch devices, boosting CapEx seems to be a rather logical move.

The news-agency claims that the equipment to be bought includes assembly robots (which replace human assemblers), milling machines (which carve aluminum bodies for MacBook PCs), polish machines (that refine plastic bodies and components), various testing gear and many other tools.

“Their designs are so unique that you have to have a very unique manufacturing process to make it. Apple has so much cash that they can invest in cutting-edge, world-class machinery that is typically used for aerospace and defense,” said Muthuraman Ramasamy, an analyst with consulting firm Frost & Sullivan.

Tags: Apple, Apple TV, iWatch, iPhone, iPad, iOS, Mac OS, macbook, Foxconn, Pegatron, Business


Comments currently: 1
Discussion started: 11/16/13 01:26:51 AM
Latest comment: 11/16/13 01:26:51 AM


iWatch = iSquint
0 0 [Posted by: fanboyslayer  | Date: 11/16/13 01:26:51 AM]


Add your Comment

Related news

Latest News

Monday, July 28, 2014

6:02 pm | Microsoft’s Mobile Strategy Seem to Fail: Sales of Lumia and Surface Remain Low. Microsoft Still Cannot Make Windows a Popular Mobile Platform

12:11 pm | Intel Core i7-5960X “Haswell-E” De-Lidded: Twelve Cores and Alloy-Based Thermal Interface. Intel Core i7-5960X Uses “Haswell-EP” Die, Promises Good Overclocking Potential

Tuesday, July 22, 2014

10:40 pm | ARM Preps Second-Generation “Artemis” and “Maya” 64-Bit ARMv8-A Offerings. ARM Readies 64-Bit Cores for Non-Traditional Applications

7:38 pm | AMD Vows to Introduce 20nm Products Next Year. AMD’s 20nm APUs, GPUs and Embedded Chips to Arrive in 2015

4:08 am | Microsoft to Unify All Windows Operating Systems for Client PCs. One Windows OS will Power PCs, Tablets and Smartphones