“After a brief lull, Apple’s R&D expenditures are once again exploding higher,” Neil Cybart writes for Above Avalon. “Apple’s 2Q18 financial guidance implies the company will soon report the largest year-over-year increase in quarterly R&D expense in its history.”
“Management is on track to spend $14 billion on R&D in FY2018, nearly double the amount spent on R&D just four years ago,” Cybart writes. “The dramatic rise in Apple R&D expenditures raises questions regarding the company’s product pipeline and whether management’s overall approach to R&D is changing.”
“Apple’s pace of R&D expenditures is nothing like the company has ever seen. The $14 billion of R&D expense that Apple will spend in FY2018 will be more than the amount Apple spent on R&D from 1998 to 2011,” Cybart writes. “My theory on the dramatic rise in Apple R&D expenditures is that management is becoming more ambitious. Apple’s future is found in new industries. Just as Apple moved from desktops/laptops to personal music players, smartphones, and watches, the company will need to enter new industries to remain relevant.”
Read more in the full article here.
MacDailyNews Take: May Apple’s R&D investment bear much fruit!
