Wednesday, January 19, 2011

Apple Spends $3.9 Billion on Secret Contracts

Apple has entered into secret long term component supply contracts worth $3.9 billion over the next two years, according to Apple COO Tim Cook.

AppleInsider reports that during the Apple Q1 2011 financial results conference call, Cook was asked about what components were involved. Cook declined to give specifics but said...

"On the operational side of house," Cook stated, "we've historically entered into agreements with others to supply; largest one was with flash memory suppliers back in 2005 that totaled over a $1 billion, because flash would become increasingly import across product line and industry."

"We think that was an absolutely fantastic use of Apple's cash and we constantly look for more of these. In the past several quarters, we've identified another area and come to recent agreements."

Cook described the deal as "similar to flash agreement, focused in an area that we feel is very strategic," but said he would "prefer not to go into more details about what specific area it's in, but it's the same kind of thinking that led us to those deals."

*thanks iclarified*

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