Sam Oliver
Apple does not appear to be resting on its laurels despite record sales of its iPhone and Mac, as the company spent nearly $2 billion on research and development in the first fiscal quarter of 2015, an increase of more than 40 percent over the year-ago figure.
The $1.9 billion outlay is $215 million more than Apple spent in the fourth quarter of fiscal 2014 and $565 million more than the spend in the first quarter of that year. As has become its custom, Apple's most recent 10-K attributed the increase broadly to "an increase in headcount and related expenses, including share-based compensation costs, and machinery and equipment to support expanded R&D activities."
Apple's overall R&D spend continues to lag behind many of its competitors, but the company has long espoused a "focused" strategy, rejecting the correlation between spending large sums on research and the production of innovative products.
"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," the filing reads. "As such, the Company expects to make further investments in R&D to remain competitive."
Unlike many other tech firms, Apple does not publicly reveal any information about its research activities, aside from the filing of patent applications. The R&D operation also suffers from few leaks relative to the company's supply chain, though some information has come to light in recent months.
Prime Minister Shinzo Abe revealed last month that Apple would build a "cutting-edge" research facility in Japan, though it has still not been formally announced. A second location is slated to come online in Camrbidge, U.K. and will join other known operations in Shanghai, Tel Aviv, and Cupertino.
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32 Comments
I think that's great. Spread the R&D development around the world. It can get you new idea's and a new prospective on things. It also keeps Apple from wasting money in taxes bring it into the U.S. Invest over in the U.K. and Japan and other places is smart.
In the past, apple has spent the lowest amount on research while hitting the target with new and creative products. Now that they are freaking huge, the should continue to research and grow into new things that are even more mind-blowing. And buy comcast so iCloud works faster. And bring us all gigabit fiber. Etc.
It makes sense that their R&D budget would continue to increase even with their focused approach. As they enter new product categories such as the ?WATCH and open R&D facilities around the world. As long as they maintain their focused approach and don't start wasting research dollars frivolously like some other tech companies. Of course I can't see Apple heading down that road. I'm sure they will continue to expand into some new product categories over time but I imagine a lot of their R&D dollars will be spent on improving their current products. Hopefully they will see a breakthrough in battery technology as I can see that having the biggest impact across a wide range of their current product lineup.
Apple is too stingy. They could afford to buy every man, woman and child a personal jetpack.
[quote name="Lolliver" url="/t/184554/apples-r-d-spending-shoots-up-42-year-over-year-hit-new-1-9b-record-in-q1#post_2668087"]Hopefully they will see a breakthrough in battery technology as I can see that having the biggest impact across a wide range of their current product lineup.[/quote] That's the one I'm hoping to see major changes in the not-to-distant future.