Apple (Nasdaq: AAPL) will invest $10.5 billion to make improvements to its assembly process and boost productivity of machines that mass produce the company's digital products. With the introduction of this year's plastic-cased iPhone 5c and lighter-than-ever iPad Air the move comes as no surprise for a company that consistently revamps its product offerings.
The spend will happen over the next year as Apple strikes exclusive machinery deals to improve its products and stay ahead rival Samsung and other competitors. Sources close to the matter report that some of the new technology will include machines to polish iPhones, laser and milling machines to carve the MacBook's aluminum body, and testing equipment for the iPhone and iPad camera lens.
Apple disclosed to the U.S. Securities and Exchange Commission that it plans to spend about $11 billion on capital expenditures in 2014, an increase of 57 percent from 2013 when the company spent $7 billion which included a revamp of its product tooling and manufacturing process equipment. By contrast, Samsung is set to outspend Apple with $22 billion in capital earmarked for expenses, while Hewlett-Packard and Sony both will spend just under $4 million.
For more, see:
This Bloomberg article
Apple's Earnings Fall Despite Rising iPhone Sales
Apple's iBeacons To Let Stores Beam Location-Based Offers To iPhones
Apple Is Testing iPhone Trade-Ins In Its Stores Now
Apple Hires Levi's Retail Exec, But He Won't Run Retail
Apple Stores Stagnate During Fruitless Search For A Leader