News
 

Bookmark and Share

(1) 

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

Discussion

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

[1-1]

1. 
iWatch = iSquint
0 0 [Posted by: fanboyslayer  | Date: 11/16/13 01:26:51 AM]
Reply

[1-1]

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month