As per the recent quarterly income statement, Apple’s R&D (Research and Development) spending is at all-time high, registering $4.2 BN in the ending of the quarter in June. This time, the mega company has spent nearly 7.9% of its whole revenue in the research & development, and this is the highest % since 2003. Apple is looking forward to spend more than $16BN on R&D, further this year.
While the iPhone is seeing a crash in its sale, the increased expenditure on research & development comes as the company’s cash cow. The iPhone saw a slump in its revenue by 12% in the last quarter. Therefore, Apple has started investing in central technologies which may power gadgets which are yet to be built.
Factually, Apple isn’t as good as other top tech firms in expending a % of its trades. In the quarter of June, 13.4% of Microsoft’s revenue was expended on research & development and 15.7% of Google’s sales on its R&D.
It has been noticed by analysts, a rise in Apple’s R&D expenditure. And this was confirmed after an interview with the company’s CFO L. Maestri, during the Q3 income call, that Apple would continue keeping the trend of spending on R&D. He was heard stating that the company wanted to enhance the experiences of users and to differentiate their services and products in the market.
Apple’s new $1BN acquisition of modem division of Intel was brought up by Maestri, that came along with 2K employees, which is the company’s largest purchase from the standpoint of employee integration. This acquisition was very essential strategically, for them.
The company hasn’t stated anything regarding its upcoming products. However, it is most probably spending heavily on techs that are yet to be released in the near future, like its expenditure on ‘Project Titan’ which focuses on auto-driven car technologies.
The company denied speaking any further than its financial reports and comments of Maestri.
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