What Does Apple Have to Show for its R&D Budget?

Apple with a big pile of money

Apple sure is spending a lot of money on research and development, but doesn’t seem to have much to show for it. Philip Elmer-DeWitt at Apple 3.0 got ahold of an investor not from Bernstein’s Toni Sacconaghi that states,

Perhaps most importantly, despite R&D spending more than quintupling over the last 6.5 years, Apple’s pace of new product/services introductions does not appear to have accelerated. We note that Apple cumulatively spent $11.5B between 1998 and 2011, a period in which it introduced the iPod, iPad, and iPhone – last year alone, Apple spent a similar amount. We believe that Apple’s R&D productivity has declined (which is not uncommon as companies scale, but may also be attributable to the loss of Steve Jobs). That said, it is also possible that the recent surge in R&D spending could translate into accelerated product and services announcements in the near to medium term.

So maybe Apple is going to surprise us with some huge product announcements, or maybe it’s R&D has just become a giant money pit.

Check It Out: What Does Apple Have to Show for its R&D Budget?

One thought on “What Does Apple Have to Show for its R&D Budget?

  • Jobs has been dead for 7-8 years and Apple is still riding the coattails of him for every single product they make – correct? If I’m not wrong not one new Apple product has been rolled out by anyone not named Steve Jobs, right? 7 years in computer/Moore’s Law years is a lifetime that Apple has done the minimal while counting their iOS money. No wonder Siri is so stupid for example – nobody at Cupertino cares.

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