Apple spends big on parts
When COO Tim Cook said he is confident that the company can meet demand going forward, this is undoubtedly a large part of that confidence. Thereupon, Apple spent nearly 60 percent more in fiscal Q2 than it did in it holiday fiscal Q2 — Japan quake-related parts issues aren’t going to be an issue and here’s the reason.
Apple’s 10-Q filing with the US Securities and Exchange Commission shows that the company has made purchase commitments, which typically cover 30 to 150 days, of $11 billion for parts and components. This compares to the $7 billion outlay in the holiday quarter.
“The demand on iPad 2 has been staggering and we’re amazed that we’re still heavily backlogged,” said Apple COO Tim Cook. “However… I’m very confident a very large number of iPads for the quarter.”
This confidence is backed by Apple actions on the ground with the company add 25 and then 13 additional countries to iPad distribution. Also, Apple has long-term supply agreements totaling $2 billion listed in its 10-Q, as well as another $3.9 billion in undisclosed deals covering critical parts, believed to include iPad displays and touch panels.
Any notion that RIM, Motorola, Samsung or anyone else will be able to take advantage of gaps in Apple’s supply and distribution chains has been quashed and left for dead. It’s not going to happen…
What’s your take?
via AppleInsider
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