Friday, May 4, 2012

Mo Money Mo Problems??


It seems as though Steve Jobs left Apple with a legacy of products...2-5 years worth of projects that are in various stages of  R&D. Tim Cook being promoted as CEO after a stint as head of operations was no accident. Apple's next move: to buy up their supply chain in their quest to control the world. With over $7 billion to spend on capital expenditures in 2012, Apple has been busy vetting Asian factories in hopes of controlling their suppliers and cutting out all competition. Once these measures are in place, who can compete with Apple's margins? It is said that this move is not just a step towards controlling costs and the competition. It also secures Apple's place in their next frontier: TV. Owning their equipment will cut costs by up to 20% and control production on memory and screens. They already know what products they want to launch, its just a matter of controlling the process. Can someone say $1000 stock price??

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