Why is Apple investing in equipment and machinery at an exponential rate?

“According to a new report by Asymco this week, Apple is currently investing in both equipment (and machinery) at a rate which is considered particularly abnormal than what the company has done in this regard in the past,” Aaron reports for RazorianFly.

“Noting that by watching this trend he can effectively “assess approximately when and for which products [this] investment [is] allocated,” Asymco’s Horace Dediu highlights that Apple’s quarterly spend on PP&E by line time moving into the second quarter of this year appears to show exponential growth of the firm’s investments in machinery, equipment and internal-use software,” Aaron reports. “The question is: What is Apple investing so much in this production for? — The Apple television, new Macs, the next-generation iPhone, a “smaller” 7-inch iPad? …None of the above?”

“The sheer size of this reported investment could suggest the company is gearing up to launch a new class of product, just as it did with the introduction of the iPhone in 2007 and iPad in 2010,” Aaron writes. “That said, it’s totally plausible that such investment in production could also be needed for a revamp to the firm’s entire product line. In this case scenario, such a jump in investment would make a lot of sense.”

Read more in the full article here.

MacDailyNews Take: Something wicked this way comes.

Related articles:
Apple’s recent huge investments in plants and equipment for Liquidmetal use in iOS devices, Macs? – May 22, 2012
Piper Jaffray: Apple iPhone 5 to feature completely redesigned body style, resemble iPad’s metallic rear panel – May 22, 2012
Apple patent app details new, possibly Liquidmetal-based speakerphone system for iOS devices – May 17, 2012
Liquidmetal Technologies reports Q112 revenue of $0.2 million – May 15, 2012
Apple’s forthcoming Macbook Pro 2012 models could be made with Liquidmetal – May 14, 2012
Apple and Liquidmetal: Don’t go by co-inventor’s word, he hasn’t worked for Liquidmetal since 2007 – May 6, 2012
Liquidmetal inventor: Apple will use it in a ‘breakthrough product’ that will be very difficult to copy – May 2, 2012
Whoa! This Liquidmetal iPhone 5 concept looks real – May 2, 2012
Check out these ultra-thin next-gen Liquidmetal iPhone artist’s concept images – May 1, 2012
Is Apple Inc.’s bet on Liquidmetal about to pay off? – April 30, 2012
RUMOR: New MacBooks to be built with Liquidmetal; MacBook Pro and Air lines to merge – April 26, 2012
RUMOR: Apple’s new MacBook Pro, Air to be made of Liquidmetal – April 24, 2012
A Liquidmetal iPhone 5: What’s in it for You – April 23, 2012
Apple’s next-gen iPhone may be baptized in Liquidmetal – April 20, 2012
Ceramics, Liquidmetal and Magic Glass, what could Apple’s iPhone 5 tempt us with next? – April 20, 2012
Apple’s iPhone 5 made of metallic glass reportedly arrives this October – April 20, 2012
Apple’s next-gen iPhone: Thinner, lighter, faster – and poured? – April 19, 2012
How Liquidmetal could give the next iPhone its special swagger – April 19, 2012
Apple’s next-gen iPhone main body to shift from Gorilla Glass to Liquidmetal, say industry sources – April 18, 2012
Liquidmetal Technologies filing outlines its multimillion dollar agreement with Apple – March 31, 2012
Apple granted its first Liquidmetal patent – January 5, 2011
Apple patent application describes scratch-resistant stainless steel – October 29, 2010
Join the dots on six future Apple technologies – September 22, 2010
Apple already using Liquidmetal in their… – August 17, 2010
Inventor says Liquidmetal may be used for new iPhone antenna – August 13, 2010
Apple already uses Liquidmetal; Guess which product and win a Magic Trackpad – August 13, 2010
How will Apple use their exclusive Liquidmetal alloy? – August 12, 2010
Apple’s exclusive Liquidmetal pact could see future Apple products encased in metallic glass – August 11, 2010
Apple inks deal for exclusive rights to custom, super-durable metal alloy – August 09, 2010

17 Comments

  1. No brain science or rocket surgery needed to figure this out. Since the iPhone was introduced in 2007, and the iPad in 2010 1 thing has been clear: Apple is selling everything they produce. If they produce more, they can sell more.

    With China opening up, along with many other markets, they need to produce more to meet the demand. Doesn’t matter if its more iPhones, iPads, iNewDevice, iNewProductClass, its all the same. They need more production capability to meet growing demand.

  2. I know it makes sense for Apple to buy up any needed equipment to ensure they can meet production goals, but how much longer before they start building the plants to house it and begin manufacturing their own components?

  3. This guy is a numbnut. The rate of investment in PPE by Apple is not “abnormal” if he read Dediu’s analysis. What’s unusual is that Apple is behind on its estimated PPE spend for this year.

    1. “numbnut” if I was you I would go back to Asymco and read through his Apple analysis for the last few years – he’s the real deal and has cut a swathe through the empty, shilling anal-ysts, with critical faculty and spot-on projections for Apple and competing manufacturers.
      It will make you more intelligent

  4. “Noting that by watching this trend he can effectively “assess approximately when and for which products [this] investment [is] allocated,”

    No, he cannot. All he can see is that Apple is gearing for SOMETHING- but he has NO clue what. More MacBooks? HDTVs? More iPads? iPhone 5? As I said, no clue. Move along people, nothing to see here…

    What the hell is this:
    highlights that Apple’s quarterly spend on PP&E by line time moving into the second quarter of this year appears to show exponential growth of the firm’s investments in machinery, equipment and internal-use software

    What is “line time moving”?? And “exponential growth”: Does he even know what that means? Sounds like a lot of hyperbole to me…

  5. Every quarter it is the same thing. “If we could have made more than we would have sold more.” Maybe Apple is addressing the problem.

    It is not just about what Apple is making and selling now. Jonathan Ive stated that what Apple is about to release is what he feels is the most important exciting product to date.

  6. Personally I hope they’re investing in some critical ability to achieve a particular trade dress, such that slavish copiers can’t get there from here.
    But realistically, I think it’s more about controlling the entire process, both for practical reasons and to cut down on leaks.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.