In the quarter ending June 2011, Apple spent less than $1 billion on property, plants, and equipment.
By March 2012, the number had spiked beyond $2 billion, beyond $3 billion, and approached $4 billion.
Here’s a chart he made to show what the spike looks like so far:
Here’s the the interesting part about all this massive spending.
No one outside of Apple knows where it’s going.
“The capital is being deployed almost silently and, though vast in scale, barely gets a mention from analysts,” writes Dediu. “Not even a single question has been raised at any earnings call about this spending.”
His theory is that Apple, which prefers an “integrated” approach in everything it does, will soon make more of the components inside its gadgets, like chips.
That would explain why Apple has been so busy hiring former Texas Instruments employees, for example.
The truth is, Apple is a very secret company and it doesn’t have to say, specifically, where it’s spending that money.
For all we know, it could be building TV set factories.
One thing one know for sure is the Apple is always working on products that would cannibalize its current lineup.
Maybe Apple is investing billions in a product that could kill the iPhone, like computerized glasses.
Apple’s capital expenditures for the last year were $8.3 billion, which is significantly above its rivals, as this chart from Horace Dediu at Asymco shows.
Dediu believes Apple’s capex is significantly above its peers because Apple is investing in data centers like Google, and process equipment like Intel. As a result, its quarterly spending is closer to Google plus Intel.
Long before retail outlets were flooded with Android-powered electronics, Google embarked on its maiden voyage into the world of hardware. Venturing out into uncharted waters, the then only web search company released a glaring yellow box known as the Google Search Appliance. Sticking to its search engine roots, Google’s first piece of enterprise hardware was designed to help its customers perform fast and effective searches of internal networks. While the GSA may not be the search juggernaut’s most noteworthy piece of equipment, it doesn’t mean that the company has abandoned its original vision for the platform.
Google goes back to basics, announces GSA 7.0 for all of your enterprise searching needs originally appeared on Engadget on Tue, 09 Oct 2012 16:51:00 EDT. Please see our terms for use of feeds.
A study by the Times finds many retailers–including major ones like Best Buy, Nordstrom and Amazon–offer the most promotional deals for smartphones, which generate millions, if not billions, in revenue.
Amazon, for example, will make $5.37 billion in sales through mobile devices by year’s end, according to a recent survey by Internet Retailer.
Flash deal and group-buying sites are also jumping on board with mobile-exclusive deals of their own. Gilt Groupe, for example, started offering special holiday promotions on Friday, November 25 at 6 a.m.
Surprisingly, it’s bricks-and-mortar stores who will be making the biggest mobile-deal push. One of the main reasons is because they must compete against the growing consumer trend of using price comparison apps, says Time Moneyland’s Brad Turtle. These apps let you scan an item, compare retailers’ prices and read product reviews, which have become increasingly popular in the last year.
What’s funny, though, is how many retail stores started arming their salespeople with the same equipment. Reuters reports that companies like Lowe’s, Best Buy and Toys R Us gave their people smartphones of their own to research products, check rival’s prices and even make purchases.
More than 40 percent of retailers now have a policy of competing against lower online prices through mobile phones, according to the research firm RSR.
Lowe’s alone is using over 42,000 Apple iPhones and distributing them to 1,700 of their stores.
With the equipment, employees can engage customers more effectively by using iPhones to track down the same information consumers are tracking. They’ll also be able to quickly see if products are in stock, or still available on the website or at another nearby store.
Some companies are also allowing their employees to either match or beat prices that a consumer finds somewhere else on their phone—good news for the consumer.
- Here’s Why Cyber Monday Will TROUNCE Black Friday
- Infographic: Which Cities Spent The Most On Black Friday?
- Cyber Monday Is Just Another Hyped-Up Marketing Gimmick
this is on Fifth Avenue between 43rd and 44th streets in New York City.
In thinking about retail … this helps illustrate the tremendous challenges they face.
– online switching costs are pretty much zero — just type another URL; these two stores are physically touching — just walk next door
– they carry much of the same inventory from plasma TVs to computers to home stereo equipment to software, CDs, DVDs, etc.
– they both sell Apple iPods; consumers have already decided to buy an iPod for Christmas (for some reason), which store do they walk into? what differentiates the store with the blue awning from the one with silver letters? they both have “black friday” discounts but the price ended up to be about $1 from each other; both have geeks on staff, one called Geek Squad and the other Fire Dog
– and then there’s Amazon.com which is tax free and offers free 2nd day shipping.
THIS is a challenging marketing problem for retailers such as the ones pictured!
UPDATED: December 2013
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
- Try On New Glasses in Warby Parker's Virtual Booth
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Marketing Costs Normalized to CPM Basis for Comparison
- Coke vs Pepsi vs Dr Pepper
- Michael Kors is driving Macy's business into the ground
- The Grand Unified Theory of Marketing(tm) - Digital String Theory
- Facebook advertising metrics and benchmarks
- Did you Google Bing too?
- See The Difference Between Victoria's Secret And Dove Models
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- June 2015 (5)
- May 2015 (4)
- April 2015 (32)
- March 2015 (57)
- February 2015 (79)
- January 2015 (86)
- December 2014 (69)
- November 2014 (98)
- October 2014 (150)
- September 2014 (109)
- August 2014 (44)
- July 2014 (92)
- June 2014 (118)
- May 2014 (173)
- April 2014 (130)
- March 2014 (247)
- February 2014 (167)
- January 2014 (222)
- December 2013 (167)
- November 2013 (111)
- October 2013 (116)
- September 2013 (214)
- August 2013 (210)
- July 2013 (200)
- June 2013 (87)
- May 2013 (87)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (93)
- August 2012 (93)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (13)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)