Apple commits $3.9 billion to secret long term component contracts

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Comments

  • Reply 21 of 70
    Quote:
    Originally Posted by Proximityeffect View Post


    Black turtle necks and blue jeans...



    Don't forget New Balance sneakers.
  • Reply 22 of 70
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by OriginalG View Post


    Now that's an idea! They couldn't make Qualcomm only sell the chips to them, but they could say "we'll take X number", X being slight more than Qualcomm can even produce according to calculations



    Apple loves monopsony power.
  • Reply 23 of 70
    melgrossmelgross Posts: 33,231member
    Quote:
    Originally Posted by Robin Huber View Post


    I recall they only bought the exclusive right to use it in their class of electronic devices, not the company itself. Am I wrong?



    Also, I doubt this mystery investment has anything to do with something that has not even rolled out in an Apple product yet (liquid metal). Too risky. They would only front that kind of money for something that they have proven useful and proven massive sales.



    Correct.
  • Reply 24 of 70
    melgrossmelgross Posts: 33,231member
    Quote:
    Originally Posted by Cubert View Post


    Is it just me or do I not find the $3.9 million figure anywhere except the title of the article?



    Billion. It was stated in the earnings call.
  • Reply 25 of 70
    melgrossmelgross Posts: 33,231member
    Quote:
    Originally Posted by Blastdoor View Post


    I immediately thought of the screens, but I didn't think of the batteries -- I bet you're right, though. Lithium ion batteries are clearly a key component that may experience shortages over the next few years.



    Sony has an exclusive battery technology the bought several years ago. first it was used in power tools (I have one, a Bosch), then in electronics. I don't know if Apple has any exclusive agreement with them, but it's the basis for batteries Apple uses in many of its products. That's how they came out with laptops with 1,000 recharge cycles that have long battery life between charges, and are safe enough to build-in.



    I provided this link the other day, but here it is again.



    http://www.eetimes.com/electronics-p...er-electronics
  • Reply 26 of 70
    Quote:
    Originally Posted by sixfootbrit View Post


    Carbon fiber manufacturing capability. That's my best guess. That and battery tech. They patented a process not long ago to improve the surface appearance of carbon fiber, and they are busy patenting thinner display tech. The future of Apple is lighter and thinner, so carbon is the top choice along with liquid metal components and thinner lighter batteries.



    I don't think they need to buy up carbon fibre manufacturing capability as their process is quite different and new and most places that currently do carbon fibre work probably couldn't do it.



    The whole carbon fibre thing is interesting though and I'm hoping that we might even see it in iPad 2.0. The profile of the new model suggests that it won't be aluminium since you can't really mill shapes like that with any efficiency.



    I'm thinking we'll either see a plastic back of some kind this time or *maybe* get a glimpse at the fruition of all those crazy carbon fibre patents. The 3D knitting one was filed rather recently though so maybe not.
  • Reply 27 of 70
    melgrossmelgross Posts: 33,231member
    Quote:
    Originally Posted by Prof. Peabody View Post


    I don't think they need to buy up carbon fibre manufacturing capability as their process is quite different and new and most places that currently do carbon fibre work probably couldn't do it.



    The whole carbon fibre thing is interesting though and I'm hoping that we might even see it in iPad 2.0. The profile of the new model suggests that it won't be aluminium since you can't really mill shapes like that with any efficiency.



    I'm thinking we'll either see a plastic back of some kind this time or *maybe* get a glimpse at the fruition of all those crazy carbon fibre patents. The 3D knitting one was filed rather recently though so maybe not.



    You can mill any shape with CNC, it doesn't care.



    If they use plastic or carbon fiber for the case, they better use a good magnesium frame, because it will flex. Carbon fiber, no matter how it's constructed, will flex more than a machined aluminum part.



    In addition, when talking about strength of carbon fiber composites, it's good to know that this is a comparison made by weight. Aluminum will still be thinner.
  • Reply 28 of 70
    chris_cachris_ca Posts: 2,543member
    Quote:
    Originally Posted by cvaldes1831 View Post


    Ahahaha!!! Apple is going to freeze out the competition on the availability of high-quality tablet displays at the ~10" form factor



    Not a problem as no one wants a "gigantic" 10" screen. Everyone only requires 7" screen.

  • Reply 29 of 70
    And I was one of the holdouts wishing for a 7" iPad 2. In November I caved in and bought my iPad. After a couple of weeks of use, I understood what Steve was talking about. You interact with the device differently because of its size. You would not interact with a 7" iPad the same way.



    Steve was right. That's why Apple pays him a dollar a year.



    Anyhow, I'm looking forward to the iPad 2. I'm going to buy it and gift my original iPad to a family member. Until then, I will happily use it.
  • Reply 30 of 70
    iliveriliver Posts: 299member
    Quote:
    Originally Posted by Proximityeffect View Post


    Black turtle necks and blue jeans...



    White iPhone4 back covers.....
  • Reply 31 of 70
    Quote:
    Originally Posted by cameronj View Post


    Apple loves monopsony power.



    Heh-heh. Was that an intentional spelling - making a portmanteau word out of "monopoly" and "sony?" Monopsony - I do like the word but not the concept behind it.
  • Reply 32 of 70
    Quote:
    Originally Posted by Ecphorizer View Post


    Heh-heh. Was that an intentional spelling - making a portmanteau word out of "monopoly" and "sony?" Monopsony - I do like the word but not the concept behind it.



    It's a real economic term - a market where there is a single buyer.
  • Reply 33 of 70
    Quote:
    Originally Posted by Cubert View Post


    Is it just me or do I not find the $3.9 million figure anywhere except the title of the article?





    It's just you. The number ($3.9 billion) is in the title and in the first sentence of the story. The number was spoken by CFO Peter Oppenheimer:



    During the September and December quarters, we executed long-term supply agreements with three vendors through which we expect to spend a total of approximately $3.9 billion in inventory component prepayments and capital expenditures over a two-year period.



    We made approximately $650 million in payments under these agreements in the December quarter, and anticipate making $1.05 billion in payments in the March quarter.
  • Reply 34 of 70
    Quote:
    Originally Posted by penchanted View Post


    It's a real economic term - a market where there is a single buyer.



    Well I'll be damned - you're absolutely right. I just looked it up for myself - thanks for making me put on my thinking cap.
  • Reply 35 of 70
    Bigger and better solid state drives, as in the new Macbook Airs, but rolled out across other product lines.
  • Reply 36 of 70
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 37 of 70
    One thing I realized is that if they're signing longterm LCD contracts, we probably won't be seeing any kind of OLED-based technology for the next two years. True?
  • Reply 38 of 70
    Quote:
    Originally Posted by OriginalG View Post


    One thing I realized is that if they're signing longterm LCD contracts, we probably won't be seeing any kind of OLED-based technology for the next two years. True?



    True, and thank God.
  • Reply 39 of 70
    uhm, question...



    I thought carbon fiber was very unfriendly when it comes to recyclability, renewability, and carbon footprint...



    I think all the carbon fiber patents are quite dated from the apple labs... perhaps something they were considering prior to adopting aluminum across the lineup...therefore probably shouldnt be taken into consideration.



    I dunno.. could be wrong.. but... just seems as though something apple wouldnt do unless they knew this stuff would still get them the green certification they want backing their products. hehe...
  • Reply 40 of 70
    realisticrealistic Posts: 1,154member
    Quote:
    Originally Posted by Cubert View Post


    Is it just me or do I not find the $3.9 million figure anywhere except the title of the article?



    Reread the article and it's 3.9 billion not 3.9 million.
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