Wednesday, March 13, 2019

Apple’s Declining Capex

Neil Cybart:

The most surprising revelation found in Apple’s recent 10-Q and 10-K filings is related to capital expenditures (capex). For the first time in 16 years, Apple expects its capex to decline during the current fiscal year. Declining capex is made that much more intriguing for Apple considering how Amazon, Alphabet, Microsoft, and Facebook are each experiencing significant increases in capex. Analyzing Apple’s capex and the potential reasons for its decline provides a look at how the company is being managed and how Apple is unique when compared to other Wall Street giants.

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Neil Cybart must have played a game with himself to see how many times he could use that contrived portmanteau in a single paragraph.

There is 11x increase in CapX from 2009 to 2018, and 20x counting from 2007. and yet there were only 6x revenue increase from 09 to 18, or 10x revenue increase from 07 to 18.

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