Apple’s latest 10-Q filing with the SEC “revealed a $2.8 billion jump in commitment for things like new manufacturing equipment, research and development, marketing and product tooling,” Wall Street Playbook writes via Seeking Alpha. “Now with rumors about an iTV, an iWatch and all sorts of possibilities, this investment could be allocated for any number of directions. You may wonder, what’s the big deal? These off-balance sheet commitments are not out of the ordinary.”
“This would be true, except the $2.8 billion doubles what Apple spent for all of 2013. And here we are only with four months of the year having elapsed,” WSP writes. “So while, some may scoff at the fact that the $2.8 billion figure includes the typical investments such as internet and telecoms services, that it far exceeds last year’s total tells me that the company is preparing to launch something big. And it won’t be the typical enhancement/upgrade to an existing category.”
WSP writes, “What’s more, the hint is that the filing shows a 30% jump in research and development costs, which, in the quarter, reached $1.4 billion.”
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