Apple Planning Surge in Retail and Cloud Spending in 2012

Last week, Apple released its annual 10-K report, offering a summary of the company's financial performance and other items of interest for fiscal 2011. One interesting tidbit from the report is gaining some attention for its glimpse into the future, as GigaOM reports on a new research note from UBS analyst Maynard Um addressing Apple's planned capital expenditures (CapEx) for fiscal 2012. From the 10-K report:

The Company’s capital expenditures were $4.6 billion during 2011, consisting of approximately $614 million for retail store facilities and $4.0 billion for other capital expenditures, including product tooling and manufacturing process equipment, real estate for the future development of the Company’s second corporate campus, and other corporate facilities and infrastructure.

...

The Company anticipates utilizing approximately $8.0 billion for capital expenditures during 2012, including approximately $900 million for retail store facilities and approximately $7.1 billion for product tooling and manufacturing process equipment, and corporate facilities and infrastructure, including information systems hardware, software and enhancements.

The projected 74% increase in capital expenditures is evidence of Apple's commitment to both retail stores other infrastructure needs, many of which are related to Apple's cloud-based initiatives. On the retail front, Apple has noted that it is planning to open forty new retail stores during fiscal 2012, and is also planning to expand or replace a number of its existing stores that are too small to adequately serve customer demand. Other infrastructure needs include cloud-focused facilities like the North Carolina data center where Apple is building a solar farm and the new corporate campus in Cupertino.

asymco capex ios unit sales
Horace Dediu at asymco has taken a different look at Apple's CapEx within the context of iOS device sales, noting that sales have been been closely correlated with CapEx over the past several years. Dediu's conclusion is that the significant increase in budgeted non-retail CapEx points toward Apple expecting yet another year of 100% growth in iOS device unit sales.

(via Daring Fireball)

Top Rated Comments

orfeas0 Avatar
163 months ago
I don't mean to be insulting, but can the people of Greece afford that right now? The financial situation over there seems rather dire.

Well yea, but that doesn't mean we can't buy laptops?
And in the last few years, more and more people are buying macbooks over here. Which means an apple store isn't a bad investment, it will sure help with the advertising. Everyone who uses one can't go back (except a few :rolleyes: <--).
Score: 3 Votes (Like | Disagree)
GiantSteve Avatar
163 months ago
The cost of building a redundant cloud infrastructure is huge. You need several data centers the size of the North Carolina facility and they need to be geographically distributed. In addition to ensuring sufficient capacity it's necessary to mirror operations across multiple centers... this is the only way to ensure 24x7 operations that can withstand network disruptions and data center wide problems. Once this is in place iCloud can realize its full potential.
Score: 3 Votes (Like | Disagree)
justinfreid Avatar
163 months ago
Increased capital expenditure is required to support the ever burgeoning iOS customer base and, of course, to increase it.
A 74% increase is enormous and gives a sense of Apple's commitment to, among other things, keeping iCloud running strong and its customers satisfied.
I hope it speaks to Apple's increased commitment to cloud services - an area they have to compete in to keep iOS moving forward and a huge investment in R&D so one day people can purchase a Siri robot to really assist them. ;)
Score: 2 Votes (Like | Disagree)
FrizzleFryBen Avatar
163 months ago
Throw more money at North Carolina! We can use the jobs, even if they are temporary construction.
Score: 2 Votes (Like | Disagree)
solomania9 Avatar
163 months ago
Apple and iCloud are gonna make it rain...
Score: 2 Votes (Like | Disagree)
RobertMartens Avatar
163 months ago


ShoulD be interesting to see what's in store (see what I did there?) for the retail stores, maybe theyll offer some new services?
Which? Do you mean the big D at the end of should, or the missing ' in they'll?

----------

You know it! That is why I will NOT sell my AAPL stock for at least 5 years, even though I am 71. AAPL is going places!

Hopefully you'll be staying put.

----------

so that graph basically forecasting that Apple should be selling around 140 million iPhones in fy2012 (double from 2011)? and roughly 220 million iOS devices in total for fy2012?


.

Geesh, that means by 2020 every person on earth will have to buy 2 iPhones a year. I'm up for it, but is everyone?
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Will Add These New Features to Your iPhone

Friday April 12, 2024 11:11 am PDT by
iOS 18 is expected to be the "biggest" update in the iPhone's history. Below, we recap rumored features and changes for the iPhone. iOS 18 is rumored to include new generative AI features for Siri and many apps, and Apple plans to add RCS support to the Messages app for an improved texting experience between iPhones and Android devices. The update is also expected to introduce a more...
iPhone 16 Camera Lozenge 2 Colors

iPhone 16 Plus Rumored to Come in These 7 Colors

Wednesday April 10, 2024 3:52 am PDT by
Apple's iPhone 16 Plus may come in seven colors that either build upon the existing five colors in the standard iPhone 15 lineup or recast them in a new finish, based on a new rumor out of China. According to the Weibo-based leaker Fixed focus digital, Apple's upcoming larger 6.7-inch iPhone 16 Plus model will come in the following colors, compared to the colors currently available for the...
apple silicon feature joeblue

Macs to Get AI-Focused M4 Chips Starting in Late 2024

Thursday April 11, 2024 10:10 am PDT by
Apple will begin updating its Mac lineup with M4 chips in late 2024, according to Bloomberg's Mark Gurman. The M4 chip will be focused on improving performance for artificial intelligence capabilities. Last year, Apple introduced the M3, M3 Pro, and M3 Max chips all at once in October, so it's possible we could see the M4 lineup come during the same time frame. Gurman says that the entire...
top stories 13apr2024

Top Stories: M4 Mac Roadmap Leaked, New iPads in Second Week of May, and More

Saturday April 13, 2024 6:00 am PDT by
Apple's hardware roadmap was in the news this week, with things hopefully firming up for a launch of updated iPad Pro and iPad Air models next month while we look ahead to the other iPad models and a full lineup of M4-based Macs arriving starting later this year. We also heard some fresh rumors about iOS 18, due to be unveiled at WWDC in a couple of months, while we took a look at how things ...
new best buy blue

Best Buy Opens Up Sitewide Sale With Record Low Prices on M3 MacBook Air, iPad, and Much More

Saturday April 13, 2024 7:41 am PDT by
Best Buy this weekend has a big sale on Apple MacBooks and iPads, including new all-time low prices on the M3 MacBook Air, alongside the best prices we've ever seen on MacBook Pro, iPad, and more. Some of these deals require a My Best Buy Plus or My Best Buy Total membership, which start at $49.99/year. In addition to exclusive access to select discounts, you'll get free 2-day shipping, an...