Apple Ramps Up R&D Intensity To Pre-iPhone High

July 30th, 2014
in News, econ_news, syndication

by Felix Richter,

Buried deep in Apple's uneventful earnings report last week was one piece of information that might hint at what could be an eventful fall for the iPhone maker.

Follow up:

In the past quarter, Apple spent $1.6 billion on research and development, which is the most the company has ever spent on R&D in a single quarter. Moreover, at 4.28% the R&D intensity, i.e. the ratio between the company's revenue and R&D expenditure, was higher than it has been in the past 8 years. The last time Apple spent more than 4% of its revenue on research and development was in fiscal year 2006, shortly before Apple's most innovative product thus far, the iPhone, was unveiled.

Despite being perceived as one of the most innovative companies in the world, Apple has been known to be a relatively modest R&D spender. Google, for example, spent $2.2 billion on R&D in the past quarter, which equals almost 15% of the company's revenue.

Whether it's the new iPhone, the long-rumoured iWatch or something entirely different, the increase of R&D expenditure suggests that Apple isn't done innovating yet and many people will be eagerly waiting to see what comes next out of Jony Ive's highly secretive lab.

This chart shows how much money Apple spends on research and development relative to its revenue.

Infographic: Apple Ramps Up R&D Intensity To Pre-iPhone High | Statista
You will find more statistics at Statista


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved