Apple Pumps $4 Billion Into Long Term Component Contracts

During today’s fiscal results conference call Apple chief operating officer Tim Cook revealed that the company has entered into long term component supply contracts worth $3.9 billion.

The contracts which are said to be two years in length were according to Cook a “fantastic” use of the company’s growing cash reserve. Cook was unable to expand on any details about the contracts saying, “I don’t want to give it out, because I view it as a competitive… something I don’t want our competition knowing.”

Cook spoke generally about past contracts that have benefited Apple such as the purchase of large amounts of NAND flash memory in 2005 that cost the company over $1 billion.

Cook described the deal as “similar to flash agreement, focused in an area that we feel is very strategic,” but said he would “prefer not to go into more details about what specific area it’s in, but it’s the same kind of thinking that led us to those deals.”

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