In general terms, these off-balance sheet commitments are for third-party manufacturers, component purchases, commitments for product tooling/manufacturing process equipment, advertising, research and development, and internet and telecommunications services.
At the end of the June quarter, commitments for third-party manufacturers and component purchases reached $15.4 billion, or a 22 percent increase year over year. Commitments for the rest were up 100 percent, to $5.6 billion.
For Huberty, these numbers mean two things:
1. The iPhone 6 is going to be really big, and Apple is ramping up for it. 2. Apple has the iWatch coming, and it’s buying tools for its manufacturing partners to start cranking out iWatches.
None of this comes as much of a surprise, of course. However, it does provide further evidence that Apple is planning to end 2014 with quite a few huge bangs.