“Given the patterns over the last six years, it might be possible to classify a company’s core business by just looking at its CapEx: The services group showing growth but relatively stable patterns and the components group showing more volatility, macroeconomic sensitivity and an overall higher level of spending, especially as a percent of sales,” Horace Dediu writes for Asymco. “The question that pops up then is in what category does Apple fall?”
“My observations for over a year have been that Apple has been increasing its capital spending to such a degree that it is neither fish nor fowl,” Dediu writes. “It operates data centers but presumably does not operate fabrication plants. And yet it spends more than Intel and Google combined.”
Dediu writes, “In its fiscal year 2012 Apple spent about $10 billion while during the same time frame Samsung spent nearly $22 billion. However, Apple has begun to bump against Samsung’s spending level on a quarterly basis. I consider this extraordinary evidence of an extraordinary shift in strategy.”
Much more in the full article – highly recommeneded – here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]
Sure. Makes sense. I believe his observation is simply stating the obvious but correct nonetheless.
Apple knows you don’t succeed by milking the cow.
You grow multiple cows.
No, no, no… It’s not multiple cows! Apple knows you don’t give away the milk for free!
I herd that was true.
You should cow-rect that.
Udderly ridiculous.
that’s udder nonsense.
lol, didn’t see your post first, Silver.
Gaaahhhh!!!!!
😀
More cowbell!!
=:~)
Nothing to see here, Moo-v along.
The news is getting around. I heard it on the bovine.
I have to ruminate on that one!
When it comes to Apple, Dediu is the only analyst worth listening to.