Apple Boosts its R&D Spending Margin to Highest Level Since 2003

Apple is intensifying its focus on research and development in alignment with Tim Cook’s vision for groundbreaking innovations. The tech giant has significantly increased its R&D spending, challenging the perception that innovation dwindled after Steve Jobs’ era. According to Stocklytics.com, Apple allocated a robust $30 billion, approximately 7.8% of its total sales, to R&D. This marked the highest spending intensity since 2003.

The site’s financial analyst, Edith Reads, notes:

The escalated investment in Apple’s R&D signals a revived commitment towards novel technologies. Industry analysts anticipate Apple’s concentration on emerging fields such as augmented reality (AR), virtual reality (VR), and autonomous vehicles. Its competitors, Microsoft and Meta, are not slacking off either, with plans to dive deeper into AI and the Metaverse already in motion.

Stocklytics Financial Analyst, Edith Reads

Apple’s Funding in R&D

Apple’s investment in R&D has been on a steady rise since 2016, when it allocated $10 billion, roughly 4.8% of total sales, to research. This figure has tripled today, highlighting Apple’s strategic shift to reshape the company and broaden its consumer base.

While the iPhone and iPad remain Apple’s flagship products, the company is increasingly exploring wearables and home business ventures. The upcoming Apple Vision Pro, set to launch in February 2024, represents Apple’s first foray into 3D camera technology, which can capture spatial images, videos, and audio. This XR handset underscores Tim Cook’s belief in the transformative potential of augmented reality.

Additionally, the technology company has dedicated significant efforts to enhance its Apple Watch series. The company released its Apple Watch Series 9 in September last year. The watch is made of custom silicon and boasts a new s9 SiP chip with over 5.6 billion resistors and a GPU that is 30% faster than the previous model.

Despite a setback with the sales ban on the Apple Watch Series 9 in late December, The firm quickly addressed the issue by redesigning the watches to exclude the pulse oximeter, allowing them to return to the shelves. Although the oxygen concentration in the blood measuring function is absent, consumers can still purchase the Apple Watch Series 9.

For years, Apple focused primarily on iPhone and iPad designs. The recent diversification strategy is expected to boost sales significantly and attract new consumers who appreciate Apple’s commitment to innovation.