“Over the past half decade or so, Apple’s capital spending has utterly skyrocketed,” Evan Niu writes for The Motley Fool. “We’re talking about unprecedented levels of investment by the Mac maker, predominantly in manufacturing process equipment, product tooling, and other infrastructure required to make products.”
“After releasing earnings on Tuesday, the company has now filed its 10-K annual report with the SEC,” Niu writes. “Here’s what Apple says in the filing about how much it expects to spend on capital expenditures in fiscal 2016.”
The Company’s capital expenditures were $11.2 billion during 2015. The Company anticipates utilizing approximately $15.0 billion for capital expenditures during 2016, which includes product tooling and manufacturing process equipment; data centers; corporate facilities and infrastructure, including information systems hardware, software and enhancements; and retail store facilities. — Apple Inc.
“That’s an unreal figure for a company that makes consumer electronics,” Niu writes. “Apple is committed to ongoing advances in manufacturing technologies that push the envelope. This often differentiates Apple’s products and allows the iPhone maker to go where the vast majority of rivals can’t follow — because they simply can’t afford to.”
Read more in the full article here.
MacDailyNews Take: Exotic materials and vehicle development, among other things, do not come cheap.
Sleep tight, Samsung, and, by all means, keep warm!