What happens to Apple's Income Statement when they buy $100 worth of new iPod factories at the start of Year 1?

When Apple purchases $100 worth of new iPod factories, this transaction does not have an immediate impact on the Income Statement in the year of purchase. The expense related to the purchase is not recorded in that period; instead, the $100 investment is capitalized on the balance sheet as a fixed asset.

The Income Statement reflects revenues and expenses on an accrual basis, and the cost of the factory will be depreciated over its useful life. As a result, there will be no change in net income, revenues, or expenses in the year the factory is purchased. The subsequent depreciation expense will affect future Income Statements, gradually impacting net income over several reporting periods.

This is why it's accurate to say that there is no immediate change to the Income Statement upon buying the factories.