Apple has increased its supply commitments by more than a third to $11 billion – a record – during the March quarter, according to an SEC filing. The jump from $7.9 billion usually spent in that three-month period indicates the Cupertino, Calif. company is pulling out all stops to ensure it meets demand for the iPad 2 and expected iPhone 5.
“We believe the increase is attributable to procurement ahead of a tight supply environment and expected shipment increases in June (iPad) and September (iPad + iPhone),” Morgan Stanley analyst Katy Huberty told investors.
Apple also stated in its 10-Q form that it has long-term supply commitments worth $2 billion. Earlier, the tech giant announced it had inked $3.9 billion in supplier contracts for unnamed strategic components.
In other revelations, the Asia/Pacific region has become Apple’s most profitable spot on the globe. The company reported 43.1 percent operating margins, beating Europe’s 42.3 percent and 40.3 for the United States.
Apple could replicate its success in China with the “potential introduction of a lower priced iPhone in 2012” helping the company “accelerate growth in emerging markets,” Huberty writes. At its last quarterly financial report. Apple said its revenue from the Asia/Pacific region climbed 151 percent, accounting for 25 percent of the firm’s overall revenue increase. To highlight the importance of the Asia/Pacific region, Apple Chief Operating Officer described the huge gains in China as a “sea change.”
