“Apple has forecast a 70 percent increase in capital expenditures for the 2010 fiscal year, which one analyst has said could be a sign the Mac maker is investing in ‘strategic new infrastructure,'” Neil Hughes reports for AppleInsider.
“In his latest note to investors Monday, Robert Cihra, analyst with Caris & Company, noted that Apple’s most recent Form 10-K filing with the U.S. Securities and Exchange Commission has called for a major $1.9 billion in capital expenditures during the 2010 fiscal year,” Hughes reports. “That’s well up from the $1.1 billion the company spent in 2009.”
Hughes reports, “‘This year’s 10K added wording for purchases of ‘product tooling and manufacturing process equipment,’ which could imply Apple reversing course to actually build certain products/components in-house,’ Cihra said. ‘Beyond that are signals of Apple investing in massive new data center capacity (e.g., North Carolina) that could support anything from iTunes/iPhone Apps through new ‘cloud computing.””
Read more in the full article here.
Let’s hope Apple will bring some manufacturing back to the US from China. That would be a feather in Apple’s cap.
I think most of that 800 million is going to the data center in NC.
It is also the Apple campus construction in Cupertino
None is never served as well as by oneself…
There is no manufacturing coming back to the US.
“There is no manufacturing coming back to the US.”
Unless you count the manufactured Barbra Streisand these analysts make up.”
Back in the old days, Apple would announce a product for sale and it would go on back order for 1-3 months. Some of it was component issues like the G4 processor but others were manufacturing ramp up issues with their US factories.
A combination of switching to Intel and even earlier moving manufacturing out of the States has meant Apple have a better handle on supply and demand.
The Asian factories have it down for putting stuff together. Apple develop the product here in CA providing high value jobs and have the units manufactured in Asia. I very much doubt that Apple could start a new factory here that has the same efficiency and adaptability as their partner factories in Asia.
” I very much doubt that Apple could start a new factory here that has the same efficiency and adaptability as their partner factories in Asia.”
Correctomundo! In the new Obamamerica all manufacturing will be unionized. At VERY great cost and loss of productivity and jobs.
Unfortunately due to poorly thought out cap and trade legislation setting up manufacturing I’m China is even more attractive.
Perhaps their ramping up their processor division?
Also, as for Bguy’s comment about where the money will be used, the NC facility was bought and paid for last year.
To the naysayers who think manufacturing in the US is dead, you’re dead wrong.
There is a revitalized interest in this country to regain our standing in the world for making things the world needs.
We can become an industrial powerhouse in the tech sector once again when Labor realizes their is more to job security besides a good wage; there is an education for your family, complete health care, paid vacations, upward mobility, to name a few, something you won’t find in China!
It’s time to reel it back in, I say, because we can’t possibly sustain our business relations with “cheap labor” countries.
Think about it, China is just getting started with their own industrial revolution and they are just now beginning to suck up all the world’s resources just meet the world’s demands.
joe the plumber’s son is gonna need a job that will pay more then 28000 at a beautiful service sector job thats just about all we have left go run and taker ur BA in what ever and become a gm for starbucks or something cuz all the ppl working in value jobs are gonna need that coffee lol its sad everything designed in America made in china assembled in mexico come on cant this country sustain its self no one listened to Mr. George Washington “do not meddle with foreign affairs”. America dug its grave years ago not even kind hearted people like Obama can get america out of its pit come on we sold our self out our ports arent even owned by us anymore if i was Obama id say go suck ya fed up this country and wanna blame me i don’t think he really knew what he was getting into he can create green jobs he can invest all of our resources into it but at the end of the day the production of all the solar panels and wind turbines (ex texas wind farm) are not gonna come from us factories we are doomed unless we wake up ppl stop watching dancing with the stars lol good night and good day. earth is dying us must mandate all fast food use biodegradable utensils just one way to make the earth happy and stop with the water bottles ppl lol ok im just goin off on all tangents and gay guys who don’t have kids and don’t want them stop being selfish and say u aint into green cuz you don’t need to worry about the future cuz u don’t have kids lol
Steve Jobs is tired of the leaks from Chinese manufacturing he wants his one more thing back, so he is building a prototype manufacturing operation, where the prototype and initial run of every new product will be built in the US and then farmed out for mass production one the product has been announced. Cost of those products have already been factored in as Apple usually has higher costs on launch for Air Ship anyway.
@ Mac Kid
If your punctuation is any hint of the education that kids are getting in America, then we really are in trouble.
“We can become an industrial powerhouse in the tech sector once again when Labor realizes their is more to job security besides a good wage;…”
It will never happen. Unions don’t believe in “givebacks”. The large majority of unions will go on strike and drive their company into bankruptcy before they accept competitive wage rates and benefit packages.
@ron
The loss in U.S. manufacturing jobs has been spread out over several decades and both Republican and Democrat administrations and Congresses. The loss of these jobs has adversely impacted the middle class in the U.S. with a continuing increase in relatively low-paying service jobs and the emergence of the financial industry (big money making more money from your money).
Unionizing is not the root of all evil, although the demands of unions can be carried to excess, just like anything else.
Given the volume of products that Apple’s building these days, it probably makes sense to bring manufacturing in-house again in many cases.
Also, given the number of leaks they’ve had from far-east manufacturing contractors, I could see why they’d want to do so.
-jcr
I can’t believe that there are still some deluded enough to thi k that you can compete with China et al in manufacturing. That war was lost a decade ago even if the results haven’t been fully comprehended.
That said the real problem arrises when they start to make their products primarily for the Asian middle classes, by which point the West finds itself with little domestic industrial capacity AND high imported product costs, the true nightmare scenario. At that point Asia becomes the dominant factor on this planet.
@mackid,
Are you aware that your post is practically incomprehensible? Obviously, it’s “just an internet post”, but what’s the point of posting if your stream-of-consciousness nearly impossible for anyone to decipher?
Your post is devoid of almost all capitalization and punctuation, which raises a question: If it’s not worth your time to punctuate or even capitalize your posts, why would it be worth anyone else’s time to try to read and understand it? I’ll let you answer that.
Now, I’m not writing this post as an attack, but instead as constructive criticism with a sprinkling of friendly advice.
If you feel that you opinions have any worth and that you’d like to communicate them, then I urge you take the time to learn your language, and learn to write.
Learning to write well will pay dividends your whole life. Conversely, NOT learning to write well will put you at a grave disadvantage – both economically and socially – your whole life.
I suspect that if someone wants to take a look at ron‘s head they will need to perform a colonoscopy.
Think “cloud”, if you want to know where that money is headed. Think iTunes and App stores, and think .ME, and think that “work-in-the-cloud” thing they are developing. That’s a lot of servers needing a place to live, needing big pipes in and out, needing a controlled environment.
KingMel has the story on manufacturing. As does DogGone. Yet John C. Randolf has a valid point … massive manufacturing may have to be done in China, but there’s still room for “craft” work to be done in the US.
@mackid
Ditto. I stopped reading after the first line…
Hopefully english is not Mac kids 1st language !
When energy prices increase such that transportation costs offset what is saved in salaries, then manufacturing will return to the US. That day is not far off.
Part of the increase may be due to inflation……how much is anyone’s guess.
If the dollar tanks, then costs will rise.
“Apple has forecast a 70 percent increase in capital expenditures for the 2010 fiscal year, which one analyst has said could be a sign the Mac maker is investing in ‘strategic new infrastructure,'”
No, really? Sherlock.