Many believe that Apple is not the same innovative company as it was in the past. Yet, the company continues to pour billions of dollars into R&D every quarter. In the quarter ending June, Apple spent $4.2 billion on research and development, its highest ever quarterly R&D spendings.
Apple spent 7.9% of its total earnings on R&D, the highest ever since 2003. This number is still considerably lower than the likes of Microsoft and Google which spent 13.4% and 15.7% of their revenue on R&D in the same quarter.
The company is on track to spend over $16 billion on R&D in 2019. With iPhone sales slowing down, the company has been investing in many of its core technologies that will be used in its future devices. This is a relatively expensive process which is why Apple’s R&D bill has shot up.
During the Q3 earnings call, Apple’s CFO Luca Maestri made it clear that the company would continue to increase its spending on R&D.
“We want to improve the user experience and differentiate our products and services in the marketplace. So, we will continue to do that,” Maestri said. “There are some types of investments, of course, that are very strategic for us and they will have long-term implications.”
One of the reasons behind the increased R&D spending is the ‘Tim Cook doctrine.’ Apple’s long-term strategy is to own and control all the core technologies behind its product. This is also the reason as to why it acquired Intel’s modem business for $1 billion — its largest ever. The acquisition is an important one for Apple on a long-term basis as it is working on developing a modem in-house.
Apple does not give a breakdown of its R&D spendings but that money is shared and spent by a number of divisions across the company. The company has been working on Project Titan, its self-driving car tech. It is also investing heavily in AR/VR about which the company is highly optimistic. It is reportedly working on AR glasses which could be released next year.If you lost data after you updated to a new iPhone, you can always use Gihosoft iPhone Data Recovery to get the data back from the old iPhone or backup.You may also like: iphonerecovery.com
[Via CNBC]
