Perhaps Jobs wasn’t talking about acquiring compnaies, but rather “to supply chain investments–money spent to overcome impediments to growth?” Paczkowski asks. “Apple has done this before, most notably in 2005, when it arranged to purchase up to 40 percent of Samsung Electronics’ holiday NAND flash output for use in it iPods.”
Paczkowski reports, “And according to COO Tim Cook, Apple just did it again–but on a much grander scale. During the first-quarter earnings call last week, Cook said the company had invested $3.9 billion to secure component supplies and capacity… For what particular components, he wouldn’t say. There are some likely candidates, though: The high-res LCD displays used in the iPhone 4 and iPad; solid-state drives like the ones in the new MacBook Air… or perhaps some new system on a chip…”
Read more in the full article here.
same thing that happened when the iPod outsold the mac. millions of people using amazing apple products. and as iOS and Mac OS X become one entity, it won’t really matter.
I’m thinking Apple paid about 20 % up front for some key items. $ 3.9 billion buys a lot. However, compared to projected sales over the next year or 2, there’s plenty of room for more upfront payments.
Asymco’s take on this is worth reading: The Bank of Apple: Using capital to ensure additional capacity and supply
Maybe we will get the higher rez display on the iPad this time. Maybe not.
” width=”19″ height=”19″ alt=”shut eye” style=”border:0;” />
Maybe the equipment needs to be updated/upgraded to be able to churn out that many and getting that in place will take a year. And part of that 3.9 billion dollars.