Apple’s 70 percent increase in capital expenditures could signal major new investments

“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.

24 Comments

  1. 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.

  2. ” 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.

  3. 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.

  4. 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

  5. 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.

  6. “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.

  7. @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.

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