Why Apple is spending crazy amounts of money on new ideas

“One of the hallmarks of Silicon Valley companies is that they tend to increase their research and development (R&D) budget during tough times, not shrink them,” Tim Bajarin writes for TIME Magazine.

“Facing a slowdown in iPhone sales and other tribulations, Apple is on track to spend $10 billion on R&D this year, a 30% increase from 2015,” Bajarin writes. “…What spooked Wall Street is that it’s clear that Apple’s iPhone sales trajectory has leveled out. Sales of iPhones during the last quarter were only about 54 million, compared to over 70 million in the same quarter a year before. Investors, who panic if they don’t see growth, have penalized Apple’s stock in a big way for the slowdown.”

“Still, some financial analysts still see Apple as a good bet. Many have have a ‘buy’ recommendation on the firm, even after factoring in lower iPhone sales levels as the new normal.,” Bajarin writes. “That said, this major increase in R&D spending is significant. It suggests that Apple has more new products in the research labs that likely go beyond its current lineup… So what could Apple be working on? Here are a few ideas.”

Read more in the full article here.

MacDailyNews Take: As Apple CEO Tim Cook said on April 26th:

The future of Apple is very bright. Our product pipeline has amazing innovations in store. We’re very excited about bringing together developers for our four major platforms at our Worldwide Developers Conference in June. We are forging ahead with important investments in research and development, in our infrastructure, and in our supply chain… We’re very excited about what’s in our pipeline.

17 Comments

  1. Probably because they can!

    Apple inc. are firing on al cylinders, plus they have not just decided to spend this amount because of the “tough compare” in 2016 iPhone sales, where analysts are trying to compare a super high iPhone 6 sales momentum with an “S” year;

    New innovative products, additional innovative capabilities to existing products are all in the pipeline;

    No other company on planet earth can deliver like Apple inc. because they control the “whole exceptional experience” they deliver to each and every user of their innovations!!

    1. Cook is always excited about what’s in his pipeline… he’s even excited about things that happen OUTSIDE of the bedroom as well.

      All this sounds quite familiar, because he’s been saying the exact thing for the past five-years. Nothing has changed, not even that wry, creepy like grin on his chalky face!

      He’s an opportunist. Cook will say anything to calm the masses. Unfortunately for Cook, the chickens are coming home to roost. Everyone can now see exactly what an incompetent gay activist looks like after five deleterious years at the helm of the once great Apple that he has ruined.

      1. @No Surprises Here: “he’s even excited about things that happen OUTSIDE of the bedroom as well.”.
        Is your bedroom not exciting enough?. Why do you want to peak into someone else bedroom?.

  2. Only doofus dimwit trolls like the jackal identity-changing Joe discount Apple foolishly. None of us has any clue what Apple might come out with yet, except those foolish enough to try, only spinning their wheels and going nowhere fast.

    By any other name the Joe’s of the world are sad pitiful creatures to be summarily dismissed to rabidly wallow in their self-created misery and hateful existence. The rest of us will simply enjoy what the future offers.

    1. Except he’s 100% right.
      You’re the dimwit for putting up with low-grade garbage thinking something better is just around the corner.
      And by the way, your name is stupid.

      Cook and his brainless apologists deserve one star.

      1. Hey, One Note Joe, I’m still waiting…

        – How old are you?
        – If you are old enough, what business do you run or what job do you have?
        – And we’d also enjoy details of the sad and pathetic life you must lead to have so much time for the incessant trolling.

        1. Hey seen.
          Unless you had not noticed Apple’s culture of inspired excellence is no more.
          A bean counter is in charge and boy has he got you dimwits fooled.

          I’ve been using Apple computers since the Performa days, and I’ve learned a thing or two.
          You don’t f*** over your pro customers and get away with it. Those people are not recommending Apple any more, and if you don’t believe me ask any creative pro who is realizing PCs run Adobe CC faster for half the money.

          A damn monkey could have led Apple to the point it is now and anyone with half a brain knows it.

          In this little MDNworld it’s all rosy.
          Anyone not cheering on Cook is a fool.
          Any company not Apple is run by idiots and is doomed.
          Anyone daring to be critical is a troll.
          Man alive, no wonder people think Apple fanboys are brainwashed.

          1. I agree. When the Mac fans switch to Wintel the future of Apple is in question. And Mac fans are switching not just because of ancient hardware but also because iWork has been gutted, iCloud is unusable for work and because MS made Office365 and OneDrive cheap and it just works, unlike Apple software today.

            Apple Mail is a shambles – it can’t sort a large mailbox, junk mail processing is a joke and even searching is hit and miss (and mostly miss – though spotlight works).

            The Mac Pro is a stupid design which produces a mess of cables and devices on the desktop instead of under the desk. My next computer will be a tower and if Apple doesn’t make a Mac pro tower then I will buy Wintel.

            I have sold a lot of people on Mac over the years. I don’t recommend Apple any more, for anything.

      2. One Star out of 10 is pretty much is the grade your brain is rated at. Clueless dummies like you are the scourge of the Internet offering up nothing but the drunken shambolic ramblings of madmen out of touch with reality and the big picture. (On top of being dedicated misanthropes.)

    2. It seems that each time that Apple has a big success, the trolls recede like cockroaches from a bright light. I imagine they wait in darkness and squalor. When Apple is in the doldrums they re-emerge to feed on detritus. Whatever, it’s a living. Every ecosystem has its scavengers and bottom-feeders.

      1. I think you will find the negative comments are, mostly, from Apple diehards who can no longer find any reason to be enthusiastic about Apple. I have iPhone 6 & 4, iPad Air, two Apple TVs, time capsule, Apple XTreme, MacBook, Mac Pro, iPod Classic.

        But my next computer will be Wintel. And I haven’t bought Wintel since 1990.

        But I just want a sensible machine with productive software that works. Sadly, this is not available from Apple today.

  3. Hmm. It’s my understanding that if you take the 2015 iPhone 6S/+ sales out of the year over year trends, that iPhone sales still continue to climb at a moderate pace. The bubble/peak that the iPhone 6S/+ sales inserted in the trend to fulfill pent up demand for a larger screen iPhone masked this continued upward trend, and helped the bears to short sales, pointing to a year over year 2015-16 decline to allege iPhone sales have peaked/flattened out.

    That will likely be the case eventually, but it’s not there yet.

  4. Apple can’t buy its way to success. Innovation can’t be purchased. Vision and performance are inherent qualities that drive innovation. If Apple is buying “ideas” then Apple is already bankrupt in innovation and devoid of leadership.

    1. Just like you’ll never have a decent argument, expertise in any field especially in business & technology, career, wife, family, friends due to the fact you’re a social pariah and a losing proposition with nothing to say anyone cares to listen to. You views show your sociopathic sophistic mind. You are seriously mentally ill and have no idea what you’re talking about in your various online pseudonyms. You fool no one.

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