After last nights earning call and the sudden drop in stock price, Apple has to do something to turn around their business in the eyes of their investors.
Apple’s CFO Peter Oppenheimer yesterday, during the earnings call, stated that Apple plans on spending $10 billion on improving the company, which he claims is a increase of a “little under $2 billion year-over-year.” Oppenheimer claimed that about $1 billion will be spent on retail stores, while the other $9 billion will be spent on a variety of things to improve the company. Oppenheimer gave examples on what that other $9 billion will be spent on. He said, “We’re buying equipment that we will own that we will put in our partners facilities. Our primary motivation there is for a supply, but we get other benefits as well.” He also notes that Apple is working on improving their data center capabilities, which will require some of the capital being spent on improvements.
Apple recently has been spending lots of money to improve their company, and it looks as if 2013 will be no different. According to Morgan Stanley’s Katy Huberty, Apple spent just $1.5 billion in 2009 on improvements, and that number quickly grew each year up to this year’s expected $10 billion.
Source: Apple Insider
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