Apple (AAPL) said in a Securities and Exchange Commission filing that its projected capital expenditure budget for the current fiscal year will be cut by $1 billion, or 8%, to $12 billion. In April, Cupertino had projected $13 billion in capex—reiterating its forecast from the beginning of the year.
A company spokeswoman told The Wall Street Journal, “Apple lowered the forecast because it was able to spend more efficiently for tooling equipment and facilities.”
“There are no changes in our product plans,” she said.
Apple’s spending reduction makes some sense given the iPhone maker was able to spend more efficiently for manufacturing, and that there are no changes in its product plans. At the same time, while the company cut its current spending on equipment due to efficiency savings, it ramped up its R&D spending by $1.5 billion reaching a total of $5.9 billion by the end of September, reports Business Insider.
“The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy,”Apple said in the SEC filing.
The revised projection comes a day after the tech giant reported its Q3/15 profit rose to $10.7 billion, or $1.85 a share, on revenue of $49.6 billion, though it fell short of expectations for iPhone sales.
Apple’s shares lost 4.2% to $125.22 on Wednesday. Ticker is up $0.50 to $125.72 in pre-market trading Thursday.