Recently, according to overseas media reports, Apple announced the next quarterly financial report for the fiscal year 2019. Suggesting its own Apple R&D spending hit a record high.
In its third-quarter 2019, Apple record investment of around $4.2 billion in its research and development, accounting for 7.9% of total revenue. This is the single quarter of Apple’s R&D expenditure since 2003, which also means Apple’s R&D expenditure in FY 2019. It will exceed US$16 billion (about RMB 112 billion, while Huawei plans to invest RMB 120 billion in 2019).
The iPhone’s earnings for the previous quarter was down 12% in precisely the same period last year. Because of this, Apple is investing in core technology, which may power the unreleased devices. However receptive technology advancement and mining comes at a cost.
Though Apple’s R&D spending from the next quarter has climbed, it lags behind other tech businesses. In the same quarter, Microsoft employed 13.4 percent of its earnings for development and research, and Google spent 15.7 percent of its overall revenue.
Apple Chief Financial Officer Luca Maestri clarified Apple’s rising R&D investment at a revenue conference call. He explained: We would like to enhance the consumer experience and produce our goods and services differ in the industry. Thus, we’ll keep doing so. Naturally, some kinds of investment are of enormous tactical importance to people. They are going to have long-term outcomes.
It is difficult to ascertain where Apple’s R&D spending is focus. A number of them might be used for products which though some are going to be used to create future products. Like the secret automobile project Project Titan along with the rumored augmented reality strain.
As previously mentioned, Apple is also trying to”grasp the key technology behind our goods.” Cook reported that this really is an element in the organization’s purchase of this Intel smartphone business.
At the moment, Cook explained: We believe this is a fantastic chance to entice many leading abilities in this area to help bring our wireless technologies patent portfolio to over 17,000. It will also quicken future product growth and additional support for our long-term plan. Control and own the key technologies behind our merchandise.