Apple Invests $3.9 Billion into Mysterious Technology.
Apple said Tuesday that it would spend $3.9 billion onto securing supplies of an undisclosed technology that it believes would be important for the company as well as for the industry at large. The company declined to disclose the type of the technology as well as its intention.
“During the September and December quarters, we executed long-term supply agreements with three vendors through which we expect to spend a total of approximately $3.9 billion in inventory component prepayments and capital expenditures over a two-year period. We made approximately $650 million in payments under these agreements in the December quarter, and anticipate making $1.05 billion in payments in the March quarter,” said Peter Oppenheimer, chief executive officer of Apple, during the recent conference call with financial analysts.
Tim Cook, the chief operating officer of Apple did not reveal any details about the technology, but compared the supply agreement to the flash agreement from 2005.
