“People are focusing on the wrong thing when analyzing Apple’s path forward in the face of slowing iPhone sales,” Neil Cybart writes for Above Avalon. “Instead of debating how much Apple will try to monetize the iPhone user base with services (not as much as consensus thinks), the company is instead planning its largest pivot yet. There are only a handful of logical explanations for Apple’s current R&D expense trajectory, and all of them result in a radically different Apple. In a few years, we are no longer going to refer to Apple as the iPhone company.”
“As I pointed out last May, Apple’s R&D expense saw a significant bump up beginning in mid-2014. It was clear Apple was up to something big. However, after looking at Apple’s 2Q16 results, it appears I underestimated the situation,” Cybart writes. “Apple is now on track to spend more than $10 billion on R&D in 2016, up nearly 30% from 2015 and ahead of even my aggressive estimate. This is a remarkable feat considering that Apple was spending a little over $3 billion per year on R&D just four years ago.”
“The most shocking aspect about the amount of money Apple is spending on R&D is how little attention it has garnered in Silicon Valley and on Wall Street,” Cybart writes. “Apple is telling us that they are working on something very big, and yet no one seems to notice or care. I find that intriguing.”
Much more in the full article – recommended – here.
MacDailyNews Take: Hello Project Titan! Batten the hatches, traditional automobile industry!