by Apple reported its quarterly numbers on Tuesday, a mixed bag that saw profits rise up but sales fall short of the mark. Here are five takeaways from the earnings call that followed.
Apple’s pouring more money into R&D
Apple has spent US$3.3 billion in the past nine months on research and development. That’s 3.1 percent of revenue, putting it on course to beat its R&D spending for the past several years. The last time spending reached that level was 2009, and it could still go higher yet. In the April-to-June quarter, R&D spending was 4.3 percent of revenue, a level not reached since before the iPhone launch. What’s driving the spending? Only Apple knows, but a good guess would be the iPhone, which will reportedly soon see a major overhaul, and Apple’s much-rumored wearable. It’s worth noting, however, that Apple’s R&D spending is lower as a percentage of revenue than many of Silicon Valley’s big enterprise tech firms.
To read this article in full or to leave a comment, please click here
