April 2012
Mon Tue Wed Thu Fri Sat Sun
« Mar   May »
 1
2345678
9101112131415
16171819202122
23242526272829
30  

Day April 3, 2012

The role of capital [1]

At the end of 2011 Apple’s net property, plant and equipment (PP&E) was $7.8 billion. This reflects $12.34 billion gross PP&E net accumulated depreciation and amortization of $4.5 billion. The depreciation and amortization increased by a total of $533 million and the gross PP&E increased by only $572 million. I say “only” because in the previous quarter PP&E increased by $1.42 billion. If we assume that this growth is equivalent to capital expenditures for the quarter, it’s also a very small amount given the company’s stated intentions to spend $7.1 billion during the fiscal year.

The gap is illustrated in the following chart: