According to a recent report, Apple invested close to $100 billion in R&D over the past five years to maintain its lead in the technology sector’s innovation race.
According to a recent report, Apple invested close to $100 billion in R&D over the past five years to maintain its lead in the technology sector’s innovation race.
Apple will spend $97.37 billion between 2018 and 2022 on R&D. According to statistics gathered by Finbold, Apple’s spending on the market increased 84.33% over the course of the five years, rising from $14.24 billion in 2018 to $26.25 billion in 2022.
“The spending on research and development has been growing steadily in recent years. In 2019, the value stood at $16.22 billion, growing by over 15 per cent to 2020’s $18.75 billion. In 2021, the spending surpassed the $20 billion market for the first to hit $21.91 billion,” said the report.
Apple maintains its position at the top despite increased competition in the technology industry by providing cutting-edge goods and services for its devoted customer base.
“Apple’s reaction to the current economic crisis has offered a glimpse of how the company values the research and development department. For instance, Apple has paused hiring for several jobs besides research and development. The measure was adopted to reduce its budget as the uncertainty prevails,” the report mentioned.
Due to Covid-lockdowns in China, which have slowed production at Foxconn’s major facility, Apple is currently dealing with a significant supply chain issue and is considering moving a significant portion of its manufacture to nations like India and Vietnam.
According to the report, Apple’s spending partly aligns with the company’s business model, which seeks to create disruptive innovation and gain a competitive advantage.
“The company has maintained that expenditure on research and development aims to improve user experience and differentiate the firm’s products and services in the marketplace. In this case, Apple has been on a relentless journey of refinement, leading to the release of better versions of products,” it said.
Notably, 2022 spending has risen despite the economy remaining depressed, characterized by high inflation and the threat of interest rate hikes.
It is safe to conclude that Apple’s prior investments have assisted the corporation in navigating the current unpredictability.
“The spending can also be interpreted as Apple having more products and services in its research line beside the current iPhone, iPad, Mac, and Apple Watch, among others,” the report said.
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