Apple Cuts Capital Expenditure Projections by $1 Billion for Fiscal 2015
On Wednesday, Apple revealed in a U.S. Securities and Exchange Commission filing that it plans to spend $12 billion on capital expenditures for the 2015 fiscal year.
As noted by The Wall Street Journal, this amount is $1 billion less than was initially projected last year. Apple says that capital spending for the first nine months of 2015 came out to $7.3 billion, leaving an extra $4.3 billion for the quarter ending in September.
Apple defines capex as costs for product tooling and manufacturing, data centers, corporate facilities, and Apple Store facilities.
The WSJ spoke to an Apple representative who said that the revised forecasts reflects more efficient spending on equipment and facilities. The report noted that Apple initially projected spending at $12.4 billion in October 2014, with another $600 million added on for building and renovating retail facilities.
While Apple plans to cut capex for 2015, it continues to increase its budget for R&D, which floated above $2 billion for the first time in the third quarter. This represents a year-over-year jump of 21 percent.
During its earnings call, Apple announced another record quarter for the three-month period ending in June, with a 33 percent increase in revenue to $49.6 billion.