Apple Spending To Jump 70% In 2010 – Signs of a New Strategy?
10:09 am, November 2nd, 2009, Ed Sutherland
A 70 percent increase in capital spending could signal Apple is preparing to chart a new course with some products. The Cupertino, Calif. company told federal regulators it will spend $1.9 billion in capital expenditures during fiscal 2010 – a jump from the $1.1 billion spend in 2009.
In its 10K filing with the Securities and Exchange Commission, Apple mentioned some of the money would go toward ‘product tooling and manufacturing process equipment,’ a sign the company may be “reversing course to actually build certain products/components in-house,” Caris & Company analyst Robert Cihra told investors Monday.
Along with altering course for manufacturing, there are signals Apple is also preparing to offer new services for iPhone or iTunes users – even entering the ‘cloud computing’ market, according to Cihra. In June, Apple picked Maiden, N.C. as the site for a $1 billion server farm, but left unanswered how the computer maker would use the new facility.
The analyst expects Apple will report record sales for the December quarter, predicting 3.4 million Macs will sell – up from the previous 3 million record posted in September – due largely to Apple’s new 13-inch unibody Macbook and the redesigned iMac.
Additionally, Apple may break its own iPhone sales record, recording 10 million in handset sales for December, up from 7.4 million announced in September. The reason: Apple has 20 percent more phones on hand to meet customer demand, plus the newly-announced sales of iPhones in China.
[Via AppleInsider]
Posted by Ed Sutherland in News | Comment on this article
I believe Apple is going to design its own ARM cpu for mobile devices. Apple bought fabless chip designer P.A. Semi at $278 million indicates Apple’s directions. Read http://bit.ly/4alMVp
Adrian Hoe, on November 2nd, 2009 at 10:20 am
Maybe Apple will finally build its now campus in cupertino and this could be the beginning of the 5 Billion needed for the property!?
Guido, on November 2nd, 2009 at 10:52 am
*new
Guido, on November 2nd, 2009 at 10:54 am
“Mobile Devices” ….
YECCCCH
I HATE that term.
There shouldn’t be mobile deviceS with an “s”.
There should be ONE.
It runs data/text/audio/video.
*Everything* does that now.
It just needs better power storage & cheap online access.
And come in 2 sizes: pantspocket & coatpocket.
The iTouch should be gotten rid of & the iPhone have it’s name changed & come in the coatsize.
Then everything’ll be nice & stable & easy to follow.
CaryMG, on November 2nd, 2009 at 2:21 pm
i hope they get new advertising.
that chevy-influenced mac vs pc commercial is getting sooooo annoying and stale…
that’s one reason i hate cheap, cutesy companies such as apple and chevy… they don’t know anything about marketing and just annoy the crap out of you–that is extreme desperation on apple’s part.
bro, on November 2nd, 2009 at 8:52 pm
Hopefully they’re spending a good chunk of that on hiring more appstore reviewers
Scott, on November 2nd, 2009 at 9:06 pm
I noticed this morning that o2 Ireland are offering the iPhone 3gS free on some deals. Is this the beginning of the end for the iPhone form factor / change of strategy?
Eoin O'Mahony, on November 3rd, 2009 at 5:08 am