Solar farm, 'spaceship' campus to help Apple expenses reach $8B

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Comments

  • Reply 21 of 29
    jonoromjonorom Posts: 293member
    Quote:
    Originally Posted by Secular Investor View Post




    Horace Dediu of Asymco.com has done a detailed analysis of Apple's Capex and come to the conclusion that Apple is planning to double production of iOS devices in 2012.



    http://www.asymco.com/2011/10/27/the...s-ios-volumes/



    OK, thanks for the link - great to see Asymco's analysis. However, I don't have a clue why he thinks production of iOS devices would require Apple to increase Capex. Duh, Apple doesn't manufacture anything themselves. How basic is that?



    It looks to me more like purchase of lots of servers. Are those typically Capex? They only last a few years.
  • Reply 22 of 29
    zindakozindako Posts: 468member
    Apple will never build a foundry, their business model is to invest in machinery equipment operated by overseas partners like Foxxcon. Building their own fab goes against the way they have been doing business all these years and may be counter productive. That money is probably set aside for product expansion or some legal content negotiations.
  • Reply 23 of 29
    Quote:
    Originally Posted by JONOROM View Post


    OK, thanks for the link - great to see Asymco's analysis. However, I don't have a clue why he thinks production of iOS devices would require Apple to increase Capex. Duh, Apple doesn't manufacture anything themselves. How basic is that?



    It looks to me more like purchase of lots of servers. Are those typically Capex? They only last a few years.



    Apple profitably uses some of they huge cash mountain to finance and own a lot of the specialised machines and equipment used in producing Apple products. It reduces their outsourcees finance requirements and costs and therefore Apple's costs and it gives them ownership and control of the machines so the competition can't use them!



    Yes, servers do count as Capex amortised over three years. If you read through the article and comments you will see that they discuss costs for servers but come to the conclusion that only a small part of the budget for machinery and equipment is for servers and that most of the budget is for manufacturing equipment and machines.
  • Reply 24 of 29
    conradjoeconradjoe Posts: 1,887member
    Quote:
    Originally Posted by zindako View Post


    That money is probably set aside for product expansion or some legal content negotiations.



    Naw. It has already been earmarked for thermonuclear war with Google.













    That is, if you can believe what Steve has said. He has been lauded for saying one thing and doing another more than once by posters here.





  • Reply 25 of 29
    Quote:
    Originally Posted by ConradJoe View Post


    Naw. It has already been earmarked for thermonuclear war with Google.













    That is, if you can believe what Steve has said. He has been lauded for saying one thing and doing another more than once by posters here.






    The cost of the litigation in the IP thermonuclear war is petty cash for Apple but is going to be very, very expensive for robber baron Google and their hoard of copycat pirates.



    Let all the pirates walk the plank
  • Reply 26 of 29
    mac_dogmac_dog Posts: 1,069member
    Quote:
    Originally Posted by Red Oak View Post


    My hope is that the solar farm will reap substantial cost savings over time. Substantial enough to impact Apple iCloud operating expenses. It can't only be about being greener



    If so, another competitive advantage



    i think apple's stock holders are perfectly content at the moment.
  • Reply 27 of 29
    am8449am8449 Posts: 392member
    Quote:
    Originally Posted by zindako View Post


    The investors speculate about Apples war chest of 80+ billion in their accounts, it's now being put to use by the company to expand its physical infrastructure. And to think they don't have to get loans or investors as joint collaborators for this expansion.



    This is the way a good business is run.



    Common sense says that if you make investments with the cash you have on hand, you will more easily handle the downside risks. Too many businesses now seem to be making investments with credit, and then needing a bailout when that investment fails.



    That's why Apple's financial footing is rock-solid.
  • Reply 28 of 29
    This building is actually an elaborate front for a large underground 'umbrella corporation' esque bunker city. Come December 20th 2012 all VIP's will relocate here before the apocalypse.
  • Reply 29 of 29
    jonoromjonorom Posts: 293member
    Quote:
    Originally Posted by Secular Investor View Post


    Apple profitably uses some of they huge cash mountain to finance and own a lot of the specialised machines and equipment used in producing Apple products. It reduces their outsourcees finance requirements and costs and therefore Apple's costs and it gives them ownership and control of the machines so the competition can't use them!



    Wow, I knew Apple's financing of suppliers' equipment was unusual, but I never imagined that Apple actually OWNED all that equipment sitting in some supplier's factory!



    In fact, I still find it hard to believe. That is kind of like owning the engine in your employee's car, as a way to help him get to work. And when you fire the employee you have to take the engine out. And the engine weighs many tons. And there are dozens or hundreds of them. And they are somewhere in China. And possession is 9/10 of the law. Etc etc.



    I believe that Apple probably financed the equipment as part of an contract/agreement for exclusive Apple-related utilization. Despite what he says, I don't think Apple actually owns it.
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