Apple Is Suddenly Spending Billion$ On Secret Projects

Date: Tuesday December 18, 2012 09:34:34 am

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Apple Is Suddenly Spending Billions Of Dollars On Secret Projects
In the quarter ending June 2011, <a href=”http://www.businessinsider.com/blackboard/apple” class=”hidden_link”>Apple</a> spent less than $1 billion on property, plants, and equipment.
By March 2012, the number had spiked beyond $2 billion, beyond $3 billion, and approached $4 billion.
<a href=”http://www.asymco.com/author/asymco/” title=”Posts by Horace Dediu”>Horace Dediu</a> <a href=”http://www.asymco.com/2012/12/11/the-new-age-of-capital-intensity/”>thinks that number will zoom past $4 billion in 2013.</a>
Here’s a chart he made to show what the spike looks like so far:
<img border=”0″ src=”http://static5.businessinsider.com/image/50c9fbe96bb3f7c63c000015-539-494/applespike.jpg” alt=”Apple Spike” />
Here’s the the interesting part about all this massive spending.
No one outside of Apple knows where it’s going.
”The capital is being deployed almost silently and, though vast in scale, barely gets a mention from analysts,” writes <a href=”http://www.asymco.com/author/asymco/” title=”Posts by Horace Dediu”>Dediu</a>. “Not even a single question has been raised at any earnings call about this spending.”
His theory is that Apple, which prefers an “integrated” approach in everything it does, will soon make more of the components inside its gadgets, like chips.
That would explain why Apple has been so busy hiring former <a href=”http://www.businessinsider.com/blackboard/texas-instruments” class=”hidden_link”>Texas Instruments</a> employees, for example.
The truth is, Apple is a very secret company and it doesn’t have to say, specifically, where it’s spending that money.
For all we know, it could be building TV set factories.
One thing we know for sure is that <a href=”http://www.businessinsider.com/apple-is-quietly-working-to-destroy-the-iphone-2012-12″>Apple is always working on products that would cannibalize its current lineup. </a>
Maybe Apple is investing billions in <a href=”http://www.businessinsider.com/apple-is-quietly-working-to-destroy-the-iphone-2012-12″>a product that could kill the iPhone, like computerized glasses.</a>
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December 18, 2012 at 9:34 AM

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