Feeds

Apple component lock-ups jump 40%

$11bn in commitments leave a mere $55bn to play with

Internet Security Threat Report 2014

Apple has made commitments to spend $11bn in manufacturing and component expenditures, a new record for the company and a sign that Cupertino is working to lock up components in an increasingly competitive market.

"As of March 26, 2011," reads Apple's 10-Q filing to the US Securities and Exchange Commssion, "the Company had outstanding off-balance sheet commitments for outsourced manufacturing and component purchases of $11.0 billion."

The SEC 10-Q filing was made after Apple's 8-K filing of last week revealed that Apple's second-quarter 2011 profit had grown 95 per cent year-on-year, a level of performance that prompted CEO Steve Jobs to crow: "We're firing on all cylinders."

This $11bn figure – which equals one-sixth of Apple's $66bn nest egg – is a significant uptick in Cupertino's manufacturing and component commitments. In the company's 10-Q filing for its previous quarter, such commitments totaled $7.9bn. We'll do the math for you: that's an increase of just under 40 per cent.

One year ago, the commitments totalled $4.9bn, making the year-on-year growth a hefty 125 per cent.

This growth in both component-purchase commitments and manufacturing-cost planning reflects not only Apple's hedging against a tightening component market due to the increased display and NAND hunger of the burgeoning mobile market, but also Cupertino's confidence that iPad 2's sales will further blossom in its next fiscal quarter.

That is, if Apple can build them fast enough. In a conference call with reporters and analysts after Apple's second-quarter 2011 financial results were announced last week, company COO and Steve Jobs stand-in Tim Cook said: "The iPad has the mother of all backlogs, but we're working very, hard to get [it] out to customers as quickly as we can."

A 40 per cent increase in manufacturing and component commitments should help. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Will.i.am gets CUFFED as he announces his new wristjob, the PULS
It's got four KILOWATTS of something, apparently
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
Jaguar Sportbrake: The chicken tikka masala of van-sized posh cars
Indian-owned Jag's latest offering curries favour with us
iPhone 6 shunned by fanbois in Apple's GREAT FAIL of CHINA
Just 100 Beijing fanbois queue to pick up new mobe
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Here's your chance to buy an ancient, working APPLE ONE
Warning: Likely to cost a lot even for a Mac
Is living with Dolby Atmos worth the faff?
Subtle, naturalistic ambiance – perfect for Transformers 4
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.