Apple Logo
A man looks at his Apple iPad in front an Apple logo outside an Apple store in downtown Shanghai March 16, 2012. Reuters/Aly Song

Apple's December quarter performance remains optimistic as its spending plan suggests the company is expecting to breeze through many revenue projections. Analysts also see Apple in a good position to offer massive cash payments and rewards to its investors. Will Apple end the year with a bang?

A new note from Morgan Stanley (via Business Insider) highlights possibilities of a December quarter blowout for Apple. In the company's last quarterly report, the company posted US$29.5 billion (AU$41.28 billion) in off balance-sheet commitments on top of the US$7.3 billion (AU$10.21 billion) in other commitments. These accounts for the money Apple plans to invest on manufacturing equipment and parts. Additionally, analysts can also use the same data to forecast Apple's expected sales.

Under the method, Morgan Stanley predicts Apple will see around US$84.4 billion (AU$118.09 billion) in revenue for December. This is 9 percent higher than what most analysts are predicting. Looking back, the Cupertino tech giant posted 1 percent more than consensus predictions in the law two quarters. Apple is also looking into US$15 billion (AU$21 billion) in capital expenditures (such as manufacturing capacity), which can account for as much as US$252 billion (AU$353.59 billion) in capital expenditures. This is 3 percent more than the consensus.

The Motley Fool also thinks that Apple remains in the best position to give back to investors. According to the report, companies that often outperform the market in the long run given they have big capital contributions. Apple is now in the best position to give massive cash payments to investors. Apple takes the lion share of all operating profits in the mobile phone market.

The company's profitability can eventually mean big cash flows for investors. In September, Apple reported US$81.3 billion (AU$113.75 billion) in operating cash flow. This is 36 percent higher year over year. Not to mention the company's comparatively low reinvestment needs. Presently, Apple is taking advantage of its capital through investor rewards. The company’s capital grew thanks largely to growing capital through buybacks and dividends.

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