As iPhone sales continue to stagnate, Apple continues to invest heavily in research and development departments.
According to a new report from CNBC Apple's R&D bill came to 7.9% of total revenue, the highest percentage since 2003, when Apple continued to focus on iPod and Mac. However, this figure is still significantly lower than Microsoft and Google, which spent 1
During the Cupertino company's Q3 earnings call, Apple CFO Luca Maestri made it clear that the company would continue to increase its R&D spending.
“We want to improve the user experience and differentiate our products and services in the market. So we will continue to do so, ”Maestri said. "Of course, there are some types of investments that are very strategic to us, and they will have long-term implications."
Apple's increased R&D spending comes because the company's historic cash cow, iPhone, has seen drastic sales declines – Apple's iPhone sales fell 12 percent from the same period last year. To combat this fall in sales, Apple hopes to invest in core technologies that could provide future Apple devices, but "open technology development costs", the report says.
The company's push to research and fund this open, dependent technology development is evident in the recent acquisition of Intel's $ 1 billion model business – one of the company's largest acquisitions ever. This acquisition reflects what the report calls the "Tim Cook Doctrine" – the company's "long-term strategy for owning and controlling the primary technologies behind the products we make," the CEO explained.
As Apple advances in services, the Cupertino company plans to launch its video streaming service, Apple TV +, later this year.