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Apple manufacturing costs spike to highest-ever levels, seen signaling huge 'iPhone 6' & 'iWatch'...

post #1 of 105
Thread Starter 
Apple's manufacturing and component purchase commitments reached a record $15.4 billion last quarter, leading one analyst to tell investors on Monday that Apple is gearing up for a blockbuster fall with the launch of an "iPhone 6" and rumored "iWatch."

Foxconn


Amit Daryanani of RBC Capital Markets noted in a research note provided to AppleInsider that Apple's manufacturing and component costs were up 18.5 percent year over year in the June quarter.

In addition, Apple will spend another $5.6 billion on other obligations such as tooling, capital assets, advertising, and research and development, representing a huge 300 percent year over year increase. While R&D spiked $425 million last quarter to reach a record $1.6 billion, Daryanani also took note of the "material spike" in commitments for tooling.

With Apple spending more money than ever on tooling ahead of this fall's anticipated product launches, Daryanani speculates that the company is spending ahead of the debut of not only its next-generation iPhone, but also a new product category that he believes could be the long-rumored "iWatch." Apple is expected to unveil its next iPhone at a media event on Sept. 9, while a separate event to showcase the company's first wearable device is rumored to take place in October.

While Apple's spending and commitments continue to grow, so does the company's cash: As of the end of the June quarter, Apple had $164.5 billion, with $137.7 billion of it held overseas and the remaining $28.6 billion in the U.S. Apple's overall cash balance was up $17.9 billion year over year, a 12 percent increase.

Apple is also guiding for its fiscal 2014 capital expenditures to reach a total of $11 billion, with $4.8 billion left to be spent. Apple expects to spend $500 million to build 20 new retail stores and remodel 15 more, with the remaining $10.5 billion to product tooling, manufacturing, process equipment and other items.

RBC Capital Markets has maintained its $110 price target for shares of AAPL, which it has held since late July. With $164 billion in cash amounting to a whopping $22 per share, and a "busy fall" expected, Daryanani continues to believe that shares of Apple are undervalued at their current levels.
post #2 of 105
I remember when the rumor was an Apple television.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #3 of 105
im not saying no, I'm just saying this evidence probably wouldn't get someone convicted in court.
post #4 of 105

Duh!

 

This is old news. 

I read this on the SEC filings WEEKS AGO!!!!

 

And that's why i said 5.5 is a lock.

post #5 of 105
What would we do without the rampant speculation of analysts?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #6 of 105
BUT BUT ALL THE APPLE HATERS TELL ME THAT APPLE DOESNT INVEST IN R&D
post #7 of 105
Originally Posted by SpamSandwich View Post
What would we do without the rampant speculation of analysts?

 

Have our own private islands, having sold minuscule portions of our holdings in Apple’s stock, which never went down once.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #8 of 105

I very much understand secrecy and "no comment" from AAPL regarding product upgrades and releases, iPhone in particular. You can't tell people "a new, better one is coming" because they won't buy what is on the shelf.

 

But in the case if iWatch/iTime, this makes less sense. Cook says AAPL is "deeply interested" in wearables, and thus acknowledges that these products exist. It would seem to me that AAPL would want to show off their product as soon as the form is settled on and that they really are going to do it. Since this is a new product - indeed a new product category for them - they would want to build the buzz and make the consumer tarry a moment before buying the competition.

 

I wonder if we will see a teaser like the MacPro video last year? I would rather expect iWatch/iTime to have a different ad campaign. 

 

Still, the same was true of iPad - the sooner you tip your hand to your competitor, the easier it is for them to catch up. But "smartwatches" are actually out there for sale, unlike iPads where were when Steve first held one up (then sat down in his chair to play with it in front of us all...)

 

Time will tell. (!)

post #9 of 105
I tried to preempt sog by making a joke that this meant the 5.5" iPhone was coming but he already jumped in and made his usual 5.5" iPhone post.
You can't spell appeal without Apple.
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You can't spell appeal without Apple.
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post #10 of 105
Quote:
Originally Posted by eightzero View Post
 

Still, the same was true of iPad - the sooner you tip your hand to your competitor, the easier it is for them to catch up. But "smartwatches" are actually out there for sale, unlike iPads where were when Steve first held one up (then sat down in his chair to play with it in front of us all...)

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

post #11 of 105
Quote:
Originally Posted by Suddenly Newton View Post

I remember when the rumor was an Apple television.

 

imo that thing is still in the works, at least on the set-top box side.  I am expecting both a major Apple TV refresh and an iwatch.

post #12 of 105
Quote:
Originally Posted by alcstarheel View Post

I tried to preempt sog by making a joke that this meant the 5.5" iPhone was coming but he already jumped in and made his usual 5.5" iPhone post.

 

5.5, the number of the beast!

post #13 of 105
Quote:
Originally Posted by NormM View Post
 

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

Yup. For all the nay sayers and all the predictions we know precious little of the iWatch. We don't even know if one is in the works. The fact that there are lots of watch products out there already, and in spite of regular reports citing Apple speaking to people in the medical field, we know next to nothing. I (and everybody else) suspect that if Apple brings out a wearable product it will be with the intent of disrupting an existing industry in a big way. It all points to personal medicine and potentially medicare in a broader sense, but as I said, as of now we know nothing.

post #14 of 105
Quote:
Originally Posted by alcstarheel View Post

I tried to preempt sog by making a joke that this meant the 5.5" iPhone was coming but he already jumped in and made his usual 5.5" iPhone post.

 

everything is connecting

 

you don't think it took R&D cost to produce the 5.5?

post #15 of 105

Just cashed out most of my Apple stock because we needed some cash for bills. Started investing at $74/share and cashed out at $101.81 (or $712.67 equivalent).  Almost 10x investment!  I'm sad that we couldn't leave it all in, but the right time to cash out is when the market is up and you need the cash!

 

I still have a bit in the game and hope it keeps going and will reinvest when I can!

 

So get in while you can folks.

post #16 of 105
Quote:
Originally Posted by sog35 View Post

Duh!

This is old news. 
I read this on the SEC filings WEEKS AGO!!!!

And that's why i said 5.5 is a lock.

THAT IS NOT PROOF! YOU MAKING A GUESS BASED ON YOUR DESIRES! THAT IS NOT SCIENTIFIC! YOU ALMOST HAVE A HYPOTHESIS IF YOU WERE TO WORD IT PROPERLY BUT YOU DON'T HAVE PROOF!

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #17 of 105
Quote:
 

 

Quote:
Originally Posted by NormM View Post
 

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

 

Hah!  But the tablets before the iPad had to be used with stylus and one-contact point as well.  What Steve did that day was eye-opening.  Sure the multi-point contact screen was demonstrated before, but that form-factor and the combination of the UI was just awesome!

post #18 of 105
Quote:
Originally Posted by SolipsismX View Post


THAT IS NOT PROOF! YOU MAKING A GUESS BASED ON YOUR DESIRES! THAT IS NOT SCIENTIFIC! YOU ALMOST HAVE A HYPOTHESIS IF YOU WERE TO WORD IT PROPERLY BUT YOU DON'T HAVE PROOF!

 

i have no desire for a 5.5 phone.

 

it what the market wants. so obvious.

even internally in April 2013 Apple knew the trend was larger phones.

 

post #19 of 105
Quote:
Originally Posted by sog35 View Post

i have no desire for a 5.5 phone.

it what the market wants. so obvious.
even internally in April 2013 Apple knew the trend was larger phones.
[image]

1) THAT'S NOT PROOF!

2) Did you even look at what Google says their size breakdown comes out to? A surprisingly small number of handsets are in the 5.5" range which means the market is buying many more smaller devices.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #20 of 105
Quote:
Originally Posted by NormM View Post
 

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

 

Agreed on the music players. I had a discman. But I never saw a tablet before Steve showed up with the iPad. Or I guess I should say a tablet that actually worked.

post #21 of 105
Quote:
Originally Posted by SolipsismX View Post


1) THAT'S NOT PROOF!

2) Did you even look at what Google says their size breakdown comes out to? A surprisingly small number of handsets are in the 5.5" range which means the market is buying many more smaller devices.

 

Samsung alone has sold over 100,000,000 phones 5 inches or bigger in the last 3 years

 

the hunger for large phones is undeniable

post #22 of 105
Quote:
Originally Posted by sog35 View Post

Samsung alone has sold over 100,000,000 phones 5 inches or bigger in the last 3 years

the hunger for large phones is undeniable

According to your statement the hunger was also there last year but there was no 5.5" iPhone last year. Why not?
Edited by SolipsismX - 8/25/14 at 12:57pm

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #23 of 105
Quote:
Originally Posted by SolipsismX View Post


According to your statement the hunger was also there last year but there was no 5.5" iPhone last year. Why not?

 

Apple is on a 2 year cycle.

 

4/4S

5/5S

post #24 of 105
Quote:
Originally Posted by SolipsismX View Post


THAT IS NOT PROOF! YOU MAKING A GUESS BASED ON YOUR DESIRES! THAT IS NOT SCIENTIFIC! YOU ALMOST HAVE A HYPOTHESIS IF YOU WERE TO WORD IT PROPERLY BUT YOU DON'T HAVE PROOF!

 

Someone please change sog35's nick to SOB...

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #25 of 105
More proof......

1wink.gif
post #26 of 105
Quote:
Originally Posted by NormM View Post
 

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

 

My impression was always that Apple products reflected the question "with all these half-hearted attempts, what would this product category look like if it were actually done right?"  And then they make that.  And then everyone else claims it was obvious, where obviously it wasn't.

You did not come into the world to fail. You came into the world to succeed.

- Gordon Hinckley

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You did not come into the world to fail. You came into the world to succeed.

- Gordon Hinckley

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post #27 of 105
Originally Posted by sog35 View Post
it what the market wants. so obvious.

 

 

How many times do we have to tell you that you’re lying before you’re banned for trolling?

 

Originally Posted by sog35 View Post

i thought you would know this already since you are a global moderator

 

I’m guessing 14 more.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #28 of 105
Quote:
Originally Posted by sog35 View Post

i thought you would know this already since you are a global moderator
Huh?
melior diabolus quem scies
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melior diabolus quem scies
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post #29 of 105
Quote:
Originally Posted by NormM View Post
 

Tablets had been on sale for a decade before Steve sat down with the iPad.

 

And of course music players were old news when the iPod debuted.  Apple isn't worried about others coming out with smart watches first.  They just want to make sure whatever they come out with is good.

 

its both. the improvements to old-school tablets and Mp3 players both were remarkable and certainly warranted secrecy. the old-school tablets werent even capacative multitouch, they sucked.

post #30 of 105
Quote:
Originally Posted by sog35 View Post
 

 

everything is connecting

 

you don't think it took R&D cost to produce the 5.5?

Yes it did...extra R&D cost to produce a protrude camera

and thick antenna bands as well..yup. Well, at least the new leak shows the bands got thinner.

post #31 of 105
Quote:
Originally Posted by sog35 View Post

Apple is on a 2 year cycle.

4/4S
5/5S

1) No they are not. They have done yearly releases and they have kept the same exterior casing design for two years for most of their releases. None of this is set in stone, as noted by the iPhone 5C replacing the iPhone 5. There is absolutely no reason they couldn't have released a 4" 5S last year as well as a 5.5" model as well. Your trying to force your desire to fit a narrative.

2) Speaking of yearly releases, if I said to you in January 2011 that the next iPhone wouldn't be launched in June I would have been correct, but since every other iPhone before that was released in June and since I HAD NO PROOF why should you listen to my ramblings on the matter, especially if I couldn't make a sound argument to support my position. I would have been no more luckier than guessing the next dice role at the craps table but that doesn't make me clairvoyent.
Quote:
i thought you would know this already since you are a global moderator

I am?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #32 of 105
Quote:
Originally Posted by SolipsismX View Post


According to your statement the hunger was also there last year but there was no 5.5" iPhone last year. Why not?

 

That's actually a very interesting question.  If we were to assume 5.5 ends up happening, I'd be very curious to know the internal process and conversations that led to the decision (a wish ne'er to be granted, I know - but one can wish).

 

That's the bittersweet nature of this Apple - we can't have the nice things AND see how company ticks (mostly).

You did not come into the world to fail. You came into the world to succeed.

- Gordon Hinckley

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You did not come into the world to fail. You came into the world to succeed.

- Gordon Hinckley

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post #33 of 105
Quote:
Originally Posted by SolipsismX View Post

According to your statement the hunger was also there last year but there was no 5.5" iPhone last year. Why not?
I thought the smart people here said we didn't get a larger screen phone before this year because this revolutionary display technology wasn't ready yet.
post #34 of 105
Quote:
Originally Posted by jinglesthula View Post

That's actually a very interesting question.  If we were to assume 5.5 ends up happening, I'd be very curious to know the internal process and conversations that led to the decision (a wish ne'er to be granted, I know - but one can wish).

That's the bittersweet nature of this Apple - we can't have the nice things AND see how company ticks (mostly).

I think both are very likely to happen this year. Perhaps there is some technology that simply wasn't feasible last year, or it could be that they had set their goals so far in advance that the 4" was the only way to go then, or even their accounts saying they need to hold off so they can squeeze the R&D from the 4" model longer.

My guess is new technologies that would make this happen. If Gruber's prediction of a 461 PPI display for the 5.5" model is correct then we're looking at a lot of pixels. That's 2208 × 1242, which is very close to the Retina iPad which is 2048 ×1535. Obviously Apple has the technology to run that display but you need to make sure the power usage isn't so high that you need a battery that isn't too large. Then there is cost. That's just the display and I can think of a half dozen general categories of concern.

Personally, I'm hoping we see a digitizer in iDevices soon. I think that would be a great feature for the iPads as well as the 5.5" device. Of course this HW mention also includes the SW and APIs to make this a breeze for developers to support.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #35 of 105
Quote:
Originally Posted by SolipsismX View Post


I think both are very likely to happen this year. Perhaps there is some technology that simply wasn't feasible last year, or it could be that they had set their goals so far in advance that the 4" was the only way to go then, or even their accounts saying they need to hold off so they can squeeze the R&D from the 4" model longer.

My guess is new technologies that would make this happen. If Gruber's prediction of a 461 PPI display for the 5.5" model is correct then we're looking at a lot of pixels. That's 2208 × 1242, which is very close to the Retina iPad which is 2048 ×1535. Obviously Apple has the technology to run that display but you need to make sure the power usage isn't so high that you need a battery that isn't too large. Then there is cost. That's just the display and I can think of a half dozen general categories of concern.

Personally, I'm hoping we see a digitizer in iDevices soon. I think that would be a great feature for the iPads as well as the 5.5" device. Of course this HW mention also includes the SW and APIs to make this a breeze for developers to support.

 

So make the larger iPhone the premium 4K device, or do you think all models of iPhone 6 will need 4K capabilities?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #36 of 105
Quote:
Originally Posted by eightzero View Post
 

I very much understand secrecy and "no comment" from AAPL regarding product upgrades and releases, iPhone in particular. You can't tell people "a new, better one is coming" because they won't buy what is on the shelf.

 

But in the case if iWatch/iTime, this makes less sense. Cook says AAPL is "deeply interested" in wearables, and thus acknowledges that these products exist. It would seem to me that AAPL would want to show off their product as soon as the form is settled on and that they really are going to do it. Since this is a new product - indeed a new product category for them - they would want to build the buzz and make the consumer tarry a moment before buying the competition.

 

I wonder if we will see a teaser like the MacPro video last year? I would rather expect iWatch/iTime to have a different ad campaign. 

 

Still, the same was true of iPad - the sooner you tip your hand to your competitor, the easier it is for them to catch up. But "smartwatches" are actually out there for sale, unlike iPads where were when Steve first held one up (then sat down in his chair to play with it in front of us all...)

 

Time will tell. (!)

 

Hardly.

 

Smartphones had been around for years before the iPhone.

 

Tablets had been around years before the iPad.

"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
Reply
post #37 of 105
Quote:
Originally Posted by SolipsismX View Post


1) No they are not. They have done yearly releases and they have kept the same exterior casing design for two years for most of their releases. None of this is set in stone, as noted by the iPhone 5C replacing the iPhone 5. There is absolutely no reason they couldn't have released a 4" 5S last year as well as a 5.5" model as well. Your trying to force your desire to fit a narrative.

 

 

The chart made by Apple where the concluded they needed to make larger phones was done on March 2013.

 

Do you seriously think they could have produced a 5.5 inch phone in less than 6 months from scratch?  Really?  And at the same time finalize the development of TouchID?  No way on earth would Apple release a product that was being developed for only 6 months.  It would be impossible to line up all the vendors and supply chain in such a short time.

 

Again I have no desire for a 5.5 inch phone.  It just makes logical sense.

post #38 of 105
Quote:
Originally Posted by SolipsismX View Post


I think both are very likely to happen this year. Perhaps there is some technology that simply wasn't feasible last year, or it could be that they had set their goals so far in advance that the 4" was the only way to go then, or even their accounts saying they need to hold off so they can squeeze the R&D from the 4" model longer.

My guess is new technologies that would make this happen. If Gruber's prediction of a 461 PPI display for the 5.5" model is correct then we're looking at a lot of pixels. That's 2208 × 1242, which is very close to the Retina iPad which is 2048 ×1535. Obviously Apple has the technology to run that display but you need to make sure the power usage isn't so high that you need a battery that isn't too large. Then there is cost. That's just the display and I can think of a half dozen general categories of concern.

Personally, I'm hoping we see a digitizer in iDevices soon. I think that would be a great feature for the iPads as well as the 5.5" device. Of course this HW mention also includes the SW and APIs to make this a breeze for developers to support.

 

This is exactly what happenned.  Tim Cook himself said in 2013 the tech wasn't ready for a large phone up to Apple's standards.

 

http://www.electronista.com/articles/13/04/23/ceo.claims.iphone.5.best.screen/

 

"My view continues to be that the iPhone 5 has the absolute best display in the industry, and we always strive to create the very best display for our customers," Cook said. "We wouldn't ship a larger iPhone while these tradeoffs exist."


 
post #39 of 105
Quote:
Originally Posted by sog35 View Post

The chart made by Apple where the concluded they needed to make larger phones was done on March 2013.

Do you seriously think they could have produced a 5.5 inch phone in less than 6 months?  Really?

You really aren't comprehending what I write, are you?
Quote:
It just makes logical sense.

If only you had been using the normative phrasing, "I think a 5.5" makes logical sense," but you haven't been. You've been making positive statements that you claimed are factual despite showing no proof.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #40 of 105
Quote:
Originally Posted by SolipsismX View Post


I am?

 

WTF is a Mogul Globerator.

 

Its very misleading

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