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Apple's research & development costs ballooned 32% in 2013 to $4.5B

post #1 of 78
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Apple's investments in research and development continue to grow, surging another 32 percent in fiscal 2013 to reach $4.5 billion --?its highest-ever sum spent in a 12-month span.

R&D


Apple's R&D expenses, discovered by AppleInsider on Wednesday in the company's annual Form 10-K filing with the U.S. Securities and Exchange Commission, were up from $3.4 billion in fiscal 2012. That was also 39 percent increase from the $2.4 billion Apple spent on R&D in 2011.

In the 10-K filing, Apple noted that although R&D expenses have grown significantly over the last few years, the amount spent remains fairly consistent with respect to the company's net sales -- numbers that have also grown significantly.

It was disclosed that the growth in R&D expenses was driven by an increase in personnel, as well as related expenses to support expanded activities."(Apple) continues to believe that focused investments in R&D are critical to its future growth and position in the marketplace." - Apple's Form 10-K filing

"The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company's core business strategy," the filing reads. "As such, the Company expects to make further investments in R&D to remain competitive."

The spending still remains a relatively small amount of Apple's overall cash position. As of the conclusion of the September quarter, the company had nearly $150 billion cash on hand, with $111 billion of it held overseas.

The Cupertino, Calif., company also revealed its capital expenditures for fiscal 2013 were $7 billion. That consisted of $499 million for retail store facilities, and another $6.5 billion for other capital expenditures, such as product tooling, manufacturing process equipment, corporate facilities, and infrastructure.

Apple disclosed to the SEC that it plans to spend about $11 billion on capital expenditures in 2014. About $550 million of that will go toward retail store facilities, as the Mac maker expects to open about 30 new retail stores and remodel 20 existing stores in the fiscal year.

iPhone 5s Teardown
Source: iFixit


Other facts and figures revealed by Apple in its 2013 10-K:
  • As of Oct. 18, there were 24,710 AAPL shareholders of record.
  • As of Sept. 28, Apple had about 80,300 full-time equivalent employees, with about 42,800 of the them working in the company's retail operations.
  • As of the end of the September quarter, Apple owned or leased about 19.1 million square feet of building space, primarily in the U.S., with about 12 million of it being leased building space.
  • Apple revealed it owns a total of 1,428 acres of land in various locations.
  • A total of $10.5 billion was paid out in dividends in fiscal 2013, up from $2.5 billion in 2012.
post #2 of 78

This is proof they’re working on a car.

post #3 of 78
Something's odd. Apple can't possibly have just 24,710 shareholders. That number must be from something more specific.
post #4 of 78
Quote:
Originally Posted by Tallest Skil View Post
 

This is proof they’re working on a car.

It will be powered by the sun, be more reliable than M$ car, run five times faster, and be twice as easy to drive. But it will only run on 15% of the roads...

 

But at least the Air Bag system wouldn't ask 'Are you sure?' before deploying.

post #5 of 78
I may sell my car to buy more apple stock. Damn I love this company!!!!
post #6 of 78
Quote:
Originally Posted by melgross View Post

Something's odd. Apple can't possibly have just 24,710 shareholders. That number must be from something more specific.

 

Shareholders of record - is that holding more than 1,000 shares, 5,000, 25,000?

post #7 of 78
The shareholders of record is on page 22 of the annual report.

The low number reflect ownership by hedge funds, mutual funds, etc. It is also possible the stock is held in street name as opposed to the account-holder's name.
post #8 of 78

co-incedentally samsungs R&D costs increased by 32% too.

it's 4.509 billion.

I think the extra 0.009 billion is for the fake R&D at samsung spending their time playing candy crush and making false rumours about apple.

post #9 of 78
Quote:
Originally Posted by Tallest Skil View Post

This is proof they’re working on a car.

... Champagne gold with optional matching protective bumpers according to rumors. Digitimes claims the iCar will also come with a leather parking enclosure. Take that with a grain of salt as I can't imagine Apple would include it for free.


Mentioned options include an integrated iWatch and a rear-seat AppleTV, all Siri-controlled of course and remotely synced to all your devices. If true, and according to Munster it is, Apple's upcoming remote iGuidance should allow control of all auto functions from home or work using iCloud integration via your iPad or iPhone. (The Mac won't initially be supported.) IMHO it will be great for getting those teenagers back to the house by curfew. Apple's iCar is predicted to be wildly popular with the high school crowd too according to Katy Huberty who cited a Changewave survey finding that 80% of those 16-24 will buy one no matter the price.

Another blog mentions that Gorilla Glass manufacturer Corning will be supplying the windshield but no word on the side or rear glass.
Edited by Gatorguy - 10/30/13 at 7:34am
melior diabolus quem scies
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melior diabolus quem scies
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post #10 of 78
Quote:
Originally Posted by Gatorguy View Post


... Champagne gold with optional matching protective bumpers according to rumors. Digitimes claims the iCar will also come with a leather parking enclosure. Take that with a grain of salt as I can't imagine Apple would include it for free.


Mentioned options include an integrated iWatch and a rear-seat AppleTV, all Siri-controlled of course and remotely synced to all your devices. If true, and according to Munster it is, Apple's upcoming remote iGuidance should allow control of all auto functions from home or work using iCloud integration via your iPad or iPhone. (The Mac won't initially be supported.) IMHO it will be great for getting those teenagers back to the house by curfew. Apple's iCar is predicted to be wildly popular with the high school crowd according to Katy Huberty who citing a Changewave survey finding that 80% of those 16-24 will buy one no matter the price.

Another blog mentions that Gorilla Glass manufacturer Corning will be supplying the windshield but no word on the side or rear glass.

with option to use google maps instead of apple maps.

post #11 of 78
Quote:
Originally Posted by bananaman View Post

with option to use google maps instead of apple maps.

That sounds just ridiculous. I call BS on that one.

1biggrin.gif

EDIT: Breaking news at TheVerge. Apparently the iCar will be the first Apple product making extensive use of Liquid Metal. Now it all makes sense.
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post #12 of 78
iWatch, iTV, battery improvements etc.

Apple needs to improve their speakers on all their products. This is crucially important to me. The new iMac sounds far worst than the old model, but is thinner! Is that the right trade off on an iMac? I don't think so.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #13 of 78
Pfft. Apple still not spending enough in R&D!! They have a $150 bn in the bank.i guess Cook really wants to swim in a vault of gold coins. /s
post #14 of 78

iCar will also be an electric car which can go 500 miles per full charge(lolwut)

post #15 of 78
I applaud seeing Apple spend on Research and Development. In fact, this is where Apple can smartly spend its billions in profit.
post #16 of 78
Increased R&D spending is a good thing..
post #17 of 78
Quote:
Originally Posted by Ireland View Post

Apple needs to improve their speakers on all their products. This is crucially important to me. The new iMac sounds far worst than the old model, but is thinner! Is that the right trade off on an iMac? I don't think so.

 

I feel your pain, but physics are physics.  Personally, I've never NOT had external speakers (with sub) on any desktop, even the last iMac I owned (2007).

post #18 of 78

Can't wait to see pundits' headlines.

 

Apple Increases R&D Funding in Poor Attempt to Address Floundering Innovation

post #19 of 78
Quote:
Originally Posted by Ireland View Post

iWatch, iTV, battery improvements etc.

Apple needs to improve their speakers on all their products. This is crucially important to me. The new iMac sounds far worst than the old model, but is thinner! Is that the right trade off on an iMac? I don't think so.

 

Are you honestly buying an iMac for its speakers? That's ridiculous. Aesthetics are way more important than acoustics for an Apple desktop.

post #20 of 78

Apple Board seriously need to think about the amount of money Apple will be making in couple of years and invest them wisely and actively. They seem so slow in service sector growth and buyouts of some decent size market cap company which creates regular free cash flows!

 

Bottom line : Hardware business will not work forever! Competitors will copy, New companies will emerge!

Get aggressive in Service business like Apple Payments, Entertainment like Netflix, Data Provider (use VOIP) (Kick out T, VZ and get rid of phone minutes), Cable business (iTV), iSearch. Do anything but do it :p  Kick out the lazy board members like GORE! Get in guys like Elon Musk!

post #21 of 78
Quote:
Originally Posted by Ireland View Post

iWatch, iTV, battery improvements etc.

Apple needs to improve their speakers on all their products. This is crucially important to me. The new iMac sounds far worst than the old model, but is thinner! Is that the right trade off on an iMac? I don't think so.

 

It would be nice but it will never happen. The answer...

http://store.apple.com/us/mac/mac-accessories/audio-speakers#!

post #22 of 78
Originally Posted by helicopterben View Post
Apple Board seriously need to think about the amount of money Apple will be making in couple of years and invest them wisely and actively. They seem so slow in service sector growth and buyouts of some decent size market cap company which creates regular free cash flows!

 

Or they can keep doing what they’re doing and be one of the few companies that acts intelligently. What is people’s problem that living on the verge of bankruptcy (or permanently in debt) is now something desirable?! The government is not an aspiration.

 
Bottom line : Hardware business will not work forever! Competitors will copy, New companies will emerge!

 

Been working for THIRTY-SEVEN YEARS. I’m pretty darn sure it’s going to keep working just fine.

 
Get aggressive in Service business like Apple Payments, Entertainment like Netflix, Data Provider (use VOIP) (Kick out T, VZ and get rid of phone minutes), Cable business (iTV), iSearch.

 

Why would they want a bank? Why would they want to become a telecom? Why would they want a search engine? Why would they want archaic cable?

 
 Do anything but do it

 

Please don’t own Apple stock.

 

Originally Posted by paxman View Post
It would be nice but it will never happen. The answer...

http://store.apple.com/us/mac/mac-accessories/audio-speakers#!

 

But they tried that; nobody wanted it.

post #23 of 78
Quote:
Originally Posted by bananaman View Post

co-incedentally samsungs R&D costs increased by 32% too.
it's 4.509 billion.
I think the extra 0.009 billion is for the fake R&D at samsung spending their time playing candy crush and making false rumours about apple.

Could be an indicator of the plummeting value of the dollar?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #24 of 78
Quote:
Originally Posted by bananaman View Post

iCar will also be an electric car which can go 500 miles per full charge(lolwut)

After which you'll sell it, to upgrade to iCar Retina.

Also, the hood is glued shut, as are the doors.
post #25 of 78
Quote:
Originally Posted by helicopterben View Post
Bottom line : Hardware business will not work forever! Competitors will copy, New companies will emerge!

Get aggressive in Service business like Apple Payments, Entertainment like Netflix, Data Provider (use VOIP) (Kick out T, VZ and get rid of phone minutes), Cable business (iTV), iSearch. Do anything but do it :p  Kick out the lazy board members like GORE! Get in guys like Elon Musk!

Rarely do we see people that miss the point to this extent. :no:

post #26 of 78
An Apple/Tesla collab would be interesting
post #27 of 78
Quote:
Originally Posted by Chungst View Post

The shareholders of record is on page 22 of the annual report.

The low number reflect ownership by hedge funds, mutual funds, etc. It is also possible the stock is held in street name as opposed to the account-holder's name.

this.   Note that traders have to be holding the stock at the close of markets to be of record  (lots of people trade AAPL stock, few people hold it long enough to matter to Apple).  And of those that do hold it, most hold it through their broker ("street name").  Unless you get a letter directly from Apple and not through your brokerage , your stock ownership is proxied.

post #28 of 78
Originally Posted by vaporland View Post
Also, the hood is glued shut, as are the doors.

 

At least have a matching analogy. :lol:


The hood is screwed down (eight circular screws, having their own special tool), the battery is glued in, and the engines are soldered to the wheel housings.

post #29 of 78

Quote:

Originally Posted by jungmark View Post

Pfft. Apple still not spending enough in R&D!! They have a $150 bn in the bank.i guess Cook really wants to swim in a vault of gold coins. /s

Do people still get Scrooge McDuck references?  I hope so.... ...anyway....

Given:

1. The many small niggles that persist and bedevil users over multiple OS releases that more people assigned to stamp them out could solve...

2. Profitable niches the company could be in already (like an additional larger screen phone - 10% of the mobile market)...

3. The degree of "non-static" competition they face in nearly every market and space they play in....

 

4. Their (mostly) "our (non-interoperable) solution" mentality, although they know how to implement interoperability in ways that redound to their benefit (iTunes for Windows was my first "Apple experience" and led to my first Mac) that hobbles adoption rates, e.g., I don't live in an all Apple universe of friends, and I don't keep tabs on what devices they use, which means I see no reason to adopt iMessage or think in a Facetime-centric way....

...nor can most of my correspondents even view, let alone open .pages files (new or old), so irrelevant to me if it's a better program than Word...

And for other reasons...

I whole-heartedly agree.

I also see reasons for their cash hoard, e.g., leverage over gaining access to advanced component supplies, foreign/domestic tax issues and just plain prudence (to a degree), however, part of what that does is simply attract the Carl Icahns of the world....

...and I don't want a huge non-strategic stock buyback, rather an Apple that's pedal to the metal on forging ahead in operations, industrial design, services (where they've had decades of sub-par attempts), with even more "spit and polish"... ...and even more driven by R&D than today.

An iPhone, a Leatherman and thou...  ...life is complete.

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An iPhone, a Leatherman and thou...  ...life is complete.

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post #30 of 78
Quote:
Originally Posted by brutus009 View Post
 

 

Are you honestly buying an iMac for its speakers? That's ridiculous. Aesthetics are way more important than acoustics for an Apple desktop.

Also, people seem to forget that the smaller a product is the a) less material is used b) less weight/volume is shipped c) less has to be recycled.

 

Making a smaller producet a) saves on material costs b) saves on shipping costs c) saves on recycling costs

 

Smaller products = cheaper to produce* and more environmentally friendly

 

*assuming similar fab costs

post #31 of 78

It should be noted that Apple expenditures in R&D are incredibly low when compared to industry peers :

 

http://www.asymco.com/2012/01/30/you-cannot-buy-innovation/

 

Historically, they almost have been always lower than 4% of sales rather than the typical 5-10% which is all main consumer manufacturing industries norm. And their provisionning expenses are also very low.

 

That means that Apple is an extensively focused and efficient company because despite WS moaning their small expense do produce immense results.

 

The other striking thing is how their manufacturing use unusual techniques which need a lot of R&D.

The unibody process or the iphone 4 were bad enough but using deep draw aluminium forming for a computer carcass comes out of the far left field ! 

Using heavy automation is NeXt and Jobs legacy but still is quite a big R&D (mostly D) expense.

post #32 of 78
Quote:
Originally Posted by helicopterben View Post
 

Apple Board seriously need to think about the amount of money Apple will be making in couple of years and invest them wisely and actively. They seem so slow in service sector growth and buyouts of some decent size market cap company which creates regular free cash flows!

 

Bottom line : Hardware business will not work forever! Competitors will copy, New companies will emerge!

Get aggressive in Service business like Apple Payments, Entertainment like Netflix, Data Provider (use VOIP) (Kick out T, VZ and get rid of phone minutes), Cable business (iTV), iSearch. Do anything but do it :p  Kick out the lazy board members like GORE! Get in guys like Elon Musk!

 

Gawd. Please stop.

post #33 of 78
Quote:
Originally Posted by Tallest Skil View Post
 

This is proof they’re working on a car.

Well..it's proof they're working on something beyond the incremental improvements we've seen in the last two years.    Or it means that someone is wasting a hell of a lot of money.   But I've always suspected that Apple is working on a lot more than they've ever let on, especially considering the amount of employees who will occupy the new spaceship while Apple is still keeping the old campus.    You don't need that number of employees to reduce the bezel size on an iPad or make a MacBook thinner or even to design a TV or watch.

 

As I've predicted several times in the past, I think in the long term, Apple becomes a robotics/AI company.   IMO, that's a much more natural progression for Apple than a car. 

 

An Apple car probably wouldn't have doors because Apple hates seams so much.   If Apple did do a car, the question is what would they do differently from what Tesla is doing (aside from not using Android in the display)?   Also, the capital costs for a car manufacturing facility are incredibly enormous, even for Apple,  and it's not something they could farm out to an electronics factory in China.

post #34 of 78
Originally Posted by zoetmb View Post

An Apple car probably wouldn't have doors because Apple hates seams so much.   If Apple did do a car, the question is what would they do differently from what Tesla is doing (aside from not using Android in the display)?   Also, the capital costs for a car manufacturing facility are incredibly enormous, even for Apple,  and it's not something they could farm out to an electronics factory in China.

 

That’s why I hope Apple contracts with Tesla to do the internals of their vehicles. Also their battery tech. Apple is AWESOME at that stuff and we really need to stop seeing “200 miles per charge” on cars. Even their fourth-gen car, slated for 2017, is only 200MPC.

post #35 of 78

In other news, Samsung tries to write off Apple's $4.5 billion in R&D in taxes for themselves. "Everyone knows we use Apple for R&D for our future product roadmap" said a Samsung representative "so we should be able to use that for tax write-offs as well".

“What would I do? I’d shut Apple down and give the money back to the shareholders”

Michael Dell - 1997

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“What would I do? I’d shut Apple down and give the money back to the shareholders”

Michael Dell - 1997

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post #36 of 78
Quote:
Originally Posted by PScooter63 View Post

I feel your pain, but physics are physics.  Personally, I've never NOT had external speakers (with sub) on any desktop, even the last iMac I owned (2007).

That's you. You live on AI. For regular users there's a reason it's called an AIO.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #37 of 78
Quote:
Originally Posted by brutus009 View Post

Are you honestly buying an iMac for its speakers? That's ridiculous. Aesthetics are way more important than acoustics for an Apple desktop.

I know where you stand so.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #38 of 78
Quote:
Originally Posted by paxman View Post

It would be nice but it will never happen. The answer...
http://store.apple.com/us/mac/mac-accessories/audio-speakers#!

AIO! Sheesh!
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #39 of 78

I'm not sure if an Apple iCar is a serious topic or not...but just in case it is and to add some perspective....

 

I read it takes Toyota, 300 man years of time just to "upgrade" the Camry.

 

That's just for an upgrade not the original design of the car. Wow!

 

Also, I think Apple's new 5s is hardly an incremental improvement. The Fingerprint security, the A7/M chip for speed, the camera tech and the weight are quite impressive.

 

Same goes for iOS7, Mavericks, iWork/iLife now free, colors on the 5c, iPad Air, RMini, MBP's, MBA's, MacPro.

 

I think 2013 was a fantastic year for Apple. And it shows a lot of hard work. 

 

I would love to have a new 27" iMac, 11" MBA, iPad Air, iPad Mini, ATV, TimeCapsule, and a gold 5s.

 

Yes, there is overlap, but, my oh my, what beautiful machines these all are! :)

 

I'm making do with a 4s and an 8 year old iMac.

post #40 of 78
Apple fully knows R&D is the driving force behind its core values: innovation. the iPhone and iPad lines are showing signs of aging and we need those TV, iWatch, and car infotainment systems soon!
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