Did Apple Spend $2 Billion to Bail Out Sharp?

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Nov 7, 2012.

  1. macrumors bot

    MacRumors

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    #1
    [​IMG]


    Apple analyst Horace Dediu has dug deep into Apple's 2012 capital expenditures and found some spending, above and beyond what Apple had previously disclosed. He discovered that Apple spent $2.3 billion more than it had forecast on "product tooling, manufacturing process equipment and infrastructure".

    [​IMG]
    However, Apple didn't actually shell out cash for its increase in CapEx, but instead is booking vendor financing. Dediu believes it may have been to bail out Sharp, which was in dire financial straits earlier this year.
    Dediu has much more on the spending and his analysis at Asymco.

    Article Link: Did Apple Spend $2 Billion to Bail Out Sharp?
     
  2. macrumors 68020

    gmanist1000

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    #2
    Makes sense if they want to move away from Samsung displays.
     
  3. macrumors regular

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  4. macrumors 6502

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    #4
    Interesting, but I wonder why Apple wouldn't just buy the production factory outright and have Sharp operate it. That way, if anything happened to them, the plant would not be at risk of shutting down.
     
  5. macrumors 65816

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  6. macrumors regular

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  7. macrumors G3

    NT1440

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    #7
    Because its not up for sale....yet ;)

    If apple tried a takeover you get an inflated bidding process costing way more than a company is worth. It's great for the stockholders whom bail immediately afterwords but you leave the company in far more debt than it had before.
     
  8. macrumors regular

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    #8
    Nice to see Apple playing nicely for once rather than suing!
     
  9. macrumors 68020

    gmanist1000

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    #9
  10. macrumors 6502a

    turtlez

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    #10
    Suing for good reason is hardly being mean. How would you like it if someone came along and stole your designs that you work on all year round.
     
  11. macrumors 65816

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    #11
    Hopefully this is step towards getting IGZO displays in the Apple lineup, and from a stable company.
     
  12. macrumors 68040

    KdParker

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  13. macrumors 604

    thejadedmonkey

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    They're not really though. Had they played nice, they wouldn't be forced to rely on Sharp and could use Samsung's production facilities. Instead, they didn't play nice and this 2 billion bailout is a consequence.
     
  14. macrumors 603

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    #14
    They will. Apple winning $1 billion by suing Samsung and loosing $2 billion because it had to prop Sharp to get the components they could easily get from Samsung. That makes perfect economic sense (and APPL trend proves it).
     
  15. macrumors 68030

    peterdevries

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    #15
    LCD screens..
     
  16. macrumors G3

    NT1440

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    #16
    Yup, this is completely one sided. Samsung has no responsibility in the relationship between them an Apple deteriorating. :rolleyes:

    It's two massive companies having a pissing match.
     
  17. macrumors 6502a

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    #17
    Better than burning the money for stock dividends.
     
  18. macrumors 65816

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    #18
    This way if labor practices turn out bad, it's not Apple's fault. Just like it does with Foxconn...
     
  19. macrumors 65816

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    #19
    Apple should buy Sharp... and expand the company
     
  20. macrumors 604

    thejadedmonkey

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    #20
    I never said Samsung didn't have some fault, simply that it takes 2 to tango.
     
  21. macrumors G3

    NT1440

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    #21
    What do you mean by "had they played nice" when only referring to Apple? Or was the "they" all encompassing (Apple & Samsung)?

    I may have mistaken your wording on that last post.
     
  22. macrumors 6502

    extricated

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    #22
    Slightly off-topic, but yet another thing that illustrates people shouldn't assume items (like the iPad Mini) are overpriced just because the components are relatively inexpensive.
    Expenditures like this have to be absorbed into their products as a cost of doing business.

    Otherwise, Apple wouldn't be profitable (and Eddie Cue couldn't have his Ferrari).
     
  23. macrumors 603

    nuckinfutz

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    #23
    There's nothing wrong with suing. Courts are here to handle conflict resolution in a civil matter. Hundreds of years ago people spilled blood over these types of conflicts (territory, resources etc). Please stop trying to demonize a civil process that has saved millions upon millions of lives.


    Back on topic:

    I hope this is an investment. Remember Apple invested 500 million in LG to enable higher production. Sharp is moving over wholesale to IGZO panels but that cost money and their HDTV business dried up.
     
  24. macrumors 68000

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    #24
    You are "loosing" your ability to read. Apple is prepaying for product that Samsung doesn't produce, IGZO displays.
     
  25. macrumors 65816

    phoenixsan

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    #25
    Apple has....

    a long history of getting big savings in components, having bought all stock available in some cases.Having said the latter, I suppose dont hurts have a lot of cash and using some from that pile of cash to secure vital components ( we dont know for sure about bailing, but.....):):apple:
     

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