Hey Big Spender | asymco
In previous posts I described the patterns of asset value growth for Property Plant and Equipment at Apple and how that change has been thus far correlated to the production of iOS devices....
Apple's PPE is not a good indicator of their capex requirements. Since Apple primarily outsources their tangible capex, I would say that they're a more of a service company vs a hardware company. Last time I checked, their R&D expenses are tiny compared to comparable companies (if you can find a pure play, be my guest).
However, I tend to view capex as a good indicator of growth, and a company's ability to carve out a defensible position within the market. Capex could be increase in employee compensation, training, R&D, patents, etc. No wonder Apple's stock is "undervalued" relative to Amazon: Amazon actually has a defensible business model, even though their profits (or free cash flow) does not indicate that.