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Apple's Capital Expenditure In The Next Year Is Expected To Reach $ 8 Billion

By Lucy King


The latest forecast of capital expenditure Apple released is very compelling. The report pointed out that in the next fiscal year, the company's capital expenditure plans will be up to 8 billion U.S. dollars. The data is even73% higher than the company's spending of $ 4.6 billion in 2011 fiscal year. The program also implies that Apple will continue to maintain rapid growth in the next year.

Although simply seeing from the capital expenditure data of Apple, we can not predict the company's revenue expectations (http://www.china-pcb-assemblies.com/), Apple's spending plans show that the company's CEO Tim Cook is confident to further enhance the company's growth.

Under normal circumstances, the capital expenditures will generally account for 3% of the total annual revenue. In the fiscal year 2012, the number may account for around 4% of the company's total annual revenue.

However, the analyst said that: "Even if Apple's capital expenditures account for 5% of its total annual revenue, then it means in fiscal year 2012, based on its capital expenditure projections, the company will have revenues of nearly $ 160 billion, still far more than the $ 139 billion expected by the outside world."

As for the whereabouts of this enormous expenditure, Apple said to the outside world that $ 900 million will be used for opening 40 Apple stores, of which 30 will be opened in areas outside the United States. Apple will also actively add retail outlets in China to meet the consumer demand. Apple's CEO Cook said that the Chinese market will be the focus of Apple in the future.

According to Apple's 10-K report submitted to the U.S. Securities and Exchange Commission, the remaining costs will be used for the construction of products processing and manufacturing process equipment, business facilities and infrastructures including information systems hardware, software and improvements of the related products.

Some of the funds will be used to build a flying saucer shaped Apple campus in Cupertino, California. The analyst stressed, however, this expenditure will be spent on the new iCloud cloud service that Apple newly developed. The program also implies that Apple will continue to maintain rapid growth in the next year.




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