Apple spent $ 4.2 billion on research and development work in the last quarter. This is a record of the company for such costs.
It also has the highest proportion of revenue for many years — 7,9%, such a large share of the development Apple did not spend since 2003 when the company was focused on the iPod and the Mac. If the trend continues, in 2019, Apple will spend more than 16 billion on research and development.
Increased development costs has occurred simultaneously with the weakening of sales of the iPhone, the modern “cash cow” Apple in the field of hardware. Revenue from iPhone grew last quarter by 12%.
Among IT-giants Apple spends so much on development. For comparison, in the same quarter, Microsoft spent 13.4% of revenues on development, and Google is 15.7%.
“The doctrine of Steve jobs” was expressed by the head of Apple 2004: “I’ve always wanted to own and control the core technology in everything we do.”
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