“Apple is putting a record $10.5 billion to work in new technology — from assembly robots to milling machines — that consumers will never see,” Adam Satariano reports for Bloomberg News.
“To get a jump on rivals such as Samsung Electronics and lay the groundwork for new products, Apple is spending more on the machines that do the behind-the-scenes work of mass producing iPhones, iPads and other gadgets,” Satariano reports “That includes equipment to polish the new iPhone 5c’s colorful plastic, laser and milling machines to carve the MacBook’s aluminum body and testing gear for the iPhone and iPad camera lens, said people with knowledge of its manufacturing methods.”
“Apple is increasingly striking exclusive machinery deals, said the people familiar with the work, outspending peers on the tools that it then places in the factories of its suppliers, many of which are in Asia,” Satariano reports. “The $10.5 billion that Apple has forecast for fiscal 2014 capital expenditures is a fraction of its $171 billion in sales last year, and some of the money is going toward building its new headquarters in Cupertino, Calif. Samsung, which has earmarked about $22 billion in capital expenditures this year, is the only consumer-electronics company outspending Apple. By contrast, Hewlett-Packard shelled out $3.7 billion last year and Sony spent $3.95 billion.”
Read more in the full article here.
Apple’s capital expenditures to rise to $11 billion for fiscal 2014 – October 31, 2013
Robots made Apple switch to ‘Made in the U.S.A.’ Macs – December 11, 2012