A new report from CNBC this weekend explores Apple’s growing investment in research and development. Apple reported its Q3 2019 earnings last Tuesday, revealing that its R&D spending has hit a new all-time high.
During the fiscal third quarter of 2019, Apple spent $4.2 billion on research and development. That marks the most Apple has ever spent on R&D during a single quarter.
With spending of $4.2 billion, Apple spent 7.9 percent of its total revenue on research and development during the quarter. According to CNBC, that marks the highest percentage since 2003. That also means Apple is on track to spend over $16 billion on R&D during 2019.
While Apple’s R&D spending was up in Q3, it still lags behind that of other technology companies. During the same quarter, Microsoft spent 13.4 percent of its revenue on research and development, while Google invested 15.7 percent of its revenue in R&D.
Apple CFO Luca Maestri explained Apple’s growing R&D investment on Apple’s earnings call:
It’s hard to know where Apple’s R&D spending focuses. Some of it likely goes to products that are already released, while some goes to future products – like Project Titan and the oft-rumored augmented reality headset.
Apple is also in the process of trying to “own an decontrol the primary technologies behind the products that we make,” as we detailed last week. The company’s acquisition of Intel’s smartphone modem business plays a role in this, Cook said:
The full report from CNBC is definitely worth a read and can be found here.
