Apple invested $11.6 billion in R&D this year

“PwC’s 2018 Global Innovation Study analyzed the top 1,000 companies spending the most on research and development (R&D),” Dennis Sellers reports for Apple World Today.

“The professional services organization broke out the rankings by industry for the top 50,” Sellers reports, “showing the leaders in each category both in overall terms ($billion) and R&D intensity (% of total revenue).”

“According to the report, Apple spent 5.1% of its revenue for research and development in 2018 — or $11.6 billion,” Sellers reports.

Read more in the full article here.

MacDailyNews Take: That’s an increase of 15.3% year over year, a significant increase that, historically, have been followed by new product categories.

 
Top 20 R&D Spenders

13 Comments

    1. How R&D resources are spent is much more important than how much is spent. Apple developed the iPhone with a much lower R&D budget than its competitors at the time.

      Some companies throw money at R&D hoping that something will stick to the wall. Google appears to be following that shotgun R&D strategy. But how much of its R&D ever comes to fruition as an actual, successful product?

      Apple is spending plenty, it seems to me.

    2. Apple sells about 50 products total, most of them dongles or minor variations/generations of just a handful of product lines. Cook has cut more truly unique products than he has created. No surprise that Cook doesn’t outcompete other tech companies on R&D either. Cook is happy skimming profits from app sales. He isn’t even trying to keep Apple an innovation leader.

  1. And none of it spent on the Mac Pro.

    Well done Pipeline! You’ve led Apple into becoming a profoundly stupid company, one that can’t design a premium desktop computer in under FOUR years.

    Well done Pipeline.

  2. Not all R&D spending is created equal.

    That being said, Apple has extremely little innovation to show for its spending. Unless you think emoji, USB-C, Maps, or Siri are class leading breakthroughs. Under Cook, Apple has basically just been chasing social media while its non-iPhone hardware rots.

    1. Certain irony that it used to achieve more with a fraction of what it spent compared to the likes of Micosoft. But then Jobs was there for intuitive focus. That said the watch must absorb a fair amount considering no one else can get close, the silicon too with the same result so there is actually quite a lot to show for it already. Equally most of what is spent is on products we are yet to properly see (or at all) including AR, video streaming service and of course the vehical program. No doubt other stuff we know even less about too.

  3. My take is that, Many of Apples competitors are spending more, with the exception of Fakebook. Maybe Netflix.

    I would expect more from Apple, especially with Apple’s hoards of cash, and sadly, lack of visible innovation and new products or ‘killer apps’

    Seriously, No HUGE advancement in a Mac Pro? We got the watch.

    in the meantime i see the advances in Tech from Google, Microsoft, Amazon, in places you wouldn’t even expect Amazon to be.

    An earlier article today was about Apple sitting on their laurels. They did.

    Remember the treasure trove of information AMAZON released and MDN printed the DAY AFTER Xmas? Insane data that MDN called a Juggernaut? I’m not feeling that from Apple at all. And once again, When Android and Microsoft secured 90% of their market with their products, LIKE A PHONE, and Apple is still floundering not near those numbers,
    someone’s ass needs kicking.

    The stock is down because they are not selling as many phones, period. And the numbers for services are not big enough yet.

    What did they think was going to happen when investors want to see growth and innovation. Apples PE is low because there is not perceived growth coming.

    Here’s to hoping MDN take is correct.
    Show me something new?

    1. Yeah, that perceived non-growth is killing Apple’s value. I don’t think there is anything Apple can do to change that perception as long as iPhone sales are flat or decreasing. Almost no one believes in Apple’s Services growth possibilities except for maybe Jim Cramer and Buffett/Berkshire Hathaway. I need to back away and stop worrying over Wall Street’s narrow-minded viewpoint of Apple.

  4. There is only so much R&D Apple can put into the iPhone. There isn’t much to change in that form factor, so except to put in a battery that can offer 20 hours of use, the iPhone isn’t going to have much of an advantage over the competition.

    I wonder what Apple is putting all that R&D money into and if it will be worthwhile. Apple’s value is almost completely based upon iPhone unit sales. Except for AppleWatch, I don’t see anything that will provide growth for Apple. Wall Street doesn’t think Services will do it. Amazon is killing it in R&D expenditure and Apple appears to be doing it on the relative cheap. There’s no guarantee R&D spending will give a good return, so I’ve nothing to complain about with Apple’s R&D spending. I can only hope whatever money is being spent turns into some terrific products or services.

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