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.
As the world’s largest online retailer, it’s no surprise that its biggest fulfillment center in Phoenix, Arizona is the size of 28 football fields.
That’s because it’s their goal to have everything anyone wants at anytime.
Amazon has 80 fulfillment centers in the world to handle all of its orders.
Even though Amazon already has massive operations, it’s still planning to open at least two new fulfillment centers in California over the next year or so.
And with the holiday shopping season in full force, Amazon hired an additional 50,000 employees to help with the expected demand.
Thanks to Imgur user SippingTea’s incredible photos, we have a sense of that this incredible scale actually looks like.
Stacks of shelves line the warehouse
Employees need carts to navigate through the massive amounts of inventory
Hundreds of boxes full of products cover the floor
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.
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