RBC: Apple Spent Record Sum on Manufacturing, Components Last Quarter
In what can only amount to a clear indication of mammoth market releases of new and refreshed products, Apple spent record sums of money on manufacturing and component-related purchases last quarter.
According to RBC Capital Markets’s Amit Daryanani, Apple’s most recent 10-Q quarterly filing with the Securities & Exchange Commission reveals that Apple "is potentially not just gearing up for iPhone 6 ramp but could be securing capacity for a new product (iWatch?).”
That's the obvious conclusion when you realize that Apple's manufacturing and component purchase commitments jumped nearly 20% year-over-year to $15.4B for the last quarter for which such information is available.
This is consistent with another big clue at Apple. Last quarter, R&D spending increased by better than 35 percent over the same quarter last year. Setting a new quarterly record for R&D investment, Apple says it has already plunked down well over $4 billion into R&D this fiscal year.
A growing number of industry watchers and analysts believe that in addition to iPhone 6 coming next month, iWatch will be here well before the 2014 holiday shopping season commences.