“In previous articles I explained how Apple’s expenditures of capital for equipment used in manufacturing affects their output of products,” Dediu reports. “The relationship between capital in and product out should stand to reason.”
Dediu reports, “The more surprising aspect of that analysis is that we get to know in advance how much Apple spends (since they tell us their budget a year before it’s spent.) and therefore it becomes possible to get a rough idea of how much they will produce. And since demand has generally been higher than supply we can get an estimate of how much Apple will sell. The only missing piece to this logic chain is to estimate how much will shareholders benefit from the capital expenditure. I’ll try to establish the relationship through a build-out of graphs.”
Read more in the full article – recommended – here.
[Thanks to MacDailyNews Reader "qka" for the heads up.]