Katie Marsal
Last week, Apple issued its annual 10-K filing with the U.S. Securities and Exchange Commission. On Monday, analyst Maynard Um with UBS offered a closer look at the findings.
In particular, Apple expects to increase its capital expenditures 73 percent year over year in fiscal 2012. That will bring its projected expenses to $8 billion, significantly higher than the $1.2 billion the company projected back in 2009.
Um believes that a significant chunk of Apple's spending increase will be related to new construction projects the company is planning. For example, last week it was revealed that the company is planning to build a solar farm across from its massive data center in Maiden, N.C.
Apple's solar farm will be placed on 171 acres of vacant land on Startown Road. It will power the $1 billion data center that opened earlier this year and helps to power Apple's online services, including iCloud and iTunes.
Another major upcoming project for Apple that Um believes will contribute to increased expenses in 2012 is the company's new 13,000-employee campus in Cupertino. Work on the campus, dubbed a "spaceship" by late Apple co-founder Steve Jobs at a city meeting in June, is expected to begin in 2012, in preparation for an opening in 2015.
Other capital expenditure increases from Apple in 2012 will come from new retail expansions by the company. Apple has said it plans to build 40 new stores next year, with two-thirds of those overseas, helping to increase its retail capital expenses from $614 million to $900 million.
Wesley Hilliard
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29 Comments
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. Apple is in a very good position liquid wise, and they're making very wise choices with that resource.
Just as my grandma says - money makes money.
Sweet, we have figures on how much this will cost Apple, but I wonder how many jobs this will create temporary and otherwise. The places are not built and maintained by themselves.
Sweet, we have figures on how much this will cost Apple, but I wonder how many jobs this will create temporary and otherwise. The places are not built and maintained by themselves.
It will be very interesting to see to what extent the solar farm reduces the carbon footprint of the server farm, and how it impacts the running of it over time.
Just as my grandma says - money makes money.
I wish my wife thought the same. She's more of the opinion that money needs spending immediately.