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Because owning plant and equipment and capital assets is very risky; everything gets obsolete within months and now you're stuck with illiquid items that you ha
by brisance 11y ago
Because owning plant and equipment and capital assets is very risky; everything gets obsolete within months and now you're stuck with illiquid items that you have to amortize.
- toomuchtodo 11y agoCompared to capital that's fairly illiquid at the moment? Better to have a manufacturing base for your next products instead of sitting on capital that's earning close to 0 returns and that you're probably never going to repatriate to the US unless an unlikely tax holiday occurs.
- brisance 11y agoDisagree. The GT Advanced Technologies debacle is a concrete example. Sure Apple lost money on that one, but it would have been a bigger hit on their bottom line had they full invested in their own sapphire plant and tooling. In the big scheme of things, fighting a lawsuit with an external supplier is a small price ot pay as compared to missing an iPhone launch window.