Apple Invests Record $11B In Purchases, Has Highest Margins in Asia

This week Morgan Stanley analyst Kate Huberty released "10-Q Tidbits", conclusions based on Apple's 10-Q form filing with the U.S. Securities and Exchange Commission.

Kate found that Apple is going to spend $11 billion on components and other purchases in the March quarter, which is a record $3,1 billion (39%) increase in comparison to the end of 2010.

"We believe the increase is attributable to procurement ahead of a tight supply environment and expected shipment increases in June (iPad) and September (iPad + iPhone)".

Apple has agreements with component suppliers that expire in 2022 and total about $2 billion.

Kate Huberty also explained why Apple's operating margins in the Asia are the highest.

"We think Apple has the opportunity to replicate its success in China and other emerging markets and the potential introduction of a lower priced iPhone in 2012 should help accelerate growth in emerging markets".

Last quarter Apple's revenue in Asia/Pacific region rose 151% and Mac sales increased 76%.