Apple R&D spend exceeds $3B for first time, up $410M from September
As per usual, Apple accelerated investments in research and development operations over its first fiscal quarter of 2018, spending more than $3.4 billion on new hires and initiatives that will keep the company competitive in a fast-paced tech market.
Apple's $3.4 billion outlay accounted for 4 percent of the company's net sales for the three-month period ending in December, according to a Securities and Exchange Commission filing. That figure represents a $410 million sequential increase, and a $536 million bump on the year.
Apple attributes the year-over-year growth to new hires and expenses related to R&D activities. As expected, the projects are not detailed, but Apple says it focuses investments on the development of "new and updated products and services that are central to the Company's core business strategy."
If the current rate holds, Apple is on track to spend well over $10 billion on its R&D commitment through 2018. The company first broke the $10 billion per year barrier in 2016, when R&D spend accounted for 5 percent of total net sales. By comparison, Apple committed 3 percent of net sales to R&D activities in both 2014 and 2015.
The increased R&D spend implies work on projects that go beyond routine product maintenance. Potential areas of research include an expansion to augmented reality innovations, currently limited to ARKit, that could spawn new hardware categories in the coming months or years.
CEO Tim Cook has expressed enthusiasm for AR technology in past interviews, and continued to tout the technology in Thursday's earnings conference call.
"I see AR as being profound. AR has the ability to amplify human performance instead of isolating humans," Cook said. "I am a huge, huge believer in AR. We put a lot of energy on AR, we're moving very fast."
Other investments include the remnants of "Project Titan," Apple's attempt to build a self-driving car platform from scratch. Refocused into smaller teams, the initiative is now thought to be developing autonomous driving technology using specialized sensor equipment and software installed on Lexus testbeds.
Alongside internal initiatives, Apple continues to invest in outside technology through mergers and acquisitions. On Thursday, CFO Luca Maestri said the company acquired 19 smaller firms over the course of 2017.
In December, Apple snapped up popular song recognition service Shazam for an undisclosed sum. Other reported purchases include AR headset startup Vrvana, wireless charging firm PowerbyProxi and "dark data" specialist Lattice Data.
More recently, developer support service Buddybuild announced it was acquired by Apple in January.
Apple's $3.4 billion outlay accounted for 4 percent of the company's net sales for the three-month period ending in December, according to a Securities and Exchange Commission filing. That figure represents a $410 million sequential increase, and a $536 million bump on the year.
Apple attributes the year-over-year growth to new hires and expenses related to R&D activities. As expected, the projects are not detailed, but Apple says it focuses investments on the development of "new and updated products and services that are central to the Company's core business strategy."
If the current rate holds, Apple is on track to spend well over $10 billion on its R&D commitment through 2018. The company first broke the $10 billion per year barrier in 2016, when R&D spend accounted for 5 percent of total net sales. By comparison, Apple committed 3 percent of net sales to R&D activities in both 2014 and 2015.
The increased R&D spend implies work on projects that go beyond routine product maintenance. Potential areas of research include an expansion to augmented reality innovations, currently limited to ARKit, that could spawn new hardware categories in the coming months or years.
CEO Tim Cook has expressed enthusiasm for AR technology in past interviews, and continued to tout the technology in Thursday's earnings conference call.
"I see AR as being profound. AR has the ability to amplify human performance instead of isolating humans," Cook said. "I am a huge, huge believer in AR. We put a lot of energy on AR, we're moving very fast."
Other investments include the remnants of "Project Titan," Apple's attempt to build a self-driving car platform from scratch. Refocused into smaller teams, the initiative is now thought to be developing autonomous driving technology using specialized sensor equipment and software installed on Lexus testbeds.
Alongside internal initiatives, Apple continues to invest in outside technology through mergers and acquisitions. On Thursday, CFO Luca Maestri said the company acquired 19 smaller firms over the course of 2017.
In December, Apple snapped up popular song recognition service Shazam for an undisclosed sum. Other reported purchases include AR headset startup Vrvana, wireless charging firm PowerbyProxi and "dark data" specialist Lattice Data.
More recently, developer support service Buddybuild announced it was acquired by Apple in January.
Comments
Apple will probably just buy them from Samsung or LG who seem to invest more in basic technologies for their component business.
You have to give Samsung credit for developing OLED technology because now the make a ton on the screens sold to Apple. When you look at the Pixel2XL you can tell that LG isn't up to Apple standards.
I hope Apple is working on miniaturization of LIDAR technology. They could definitely bring down the cost of LIDAR systems and get a jump on the Self Driving market. Right now Apple appears behind WAYMO and GM.
All in 2019. You don't expect MacPro or Mac Mini to show up the HomePod slipped to 2018. But you have the iMacPro to tide you over. They really need to get a new MBP out. I would prefer to see an iPadPro that adds Mouse support and add an iosBook laptop, after adding multi-user support to iOS.
Even more important is the HomePod just an appliance like device for music or does it come with full OS that is a new Platform for SIRI based audio apps similar to the Echo and Alexa. Apple should be investing Billions Siri.
But then in terms of intelligent assistant much of what we want is simple. Like an English butler level, instead of a pocket Einstein. The other day I asked Siri some question about cell phone history and she brought up a very good article , not Wikipedia, that I thought must have been curated. It answered my immediate needs better than a time consuming web search. I was pleasantly surprised.
I wouldn't rule out a new Mac Pro at the end of 2018 into early 2019. Well I'm hoping at least. My piggy bank is already stuffed and waiting and no iMac Pro will do either, I'd rather wait.
Obviously, the golden goose is the iPhone so the Mac gets less love. This has been painfully obvious for years now.
IMO, the Mac division is underperforming and has committed a string of errors that haven't done it much good.
No, it's because it needs a new keyboard that works better and doesn't have a high failure rate.
Not nobody, just way too many.
If you’d read much about how apple designs products at some point in your life you’d know it’s a small, focused team. Working on a small number of products is how they roll, and also happens to be multitasking. Multitasking doesn’t mean “But I want everything I want nooowwwww!”
As for batteries, I agree that it represents a key technological area. I have no idea if Apple is brewing its own solution or is happy to leave it in the hands of other companies.
Huawei made an important breakthrough in 2015 but chose to hold it back. Two weeks ago they teased it again. No one knows why. Their next flagship will arrive next month and some say it could include it. 50% charge in 5 minutes. I have no idea. It's also possible they could open it up to other companies.