How much innovation Apple?

A few days ago , Apple reported for the third fiscal quarter of 2019. For the first time in seven years the income from iPhone sales amounted to less than 50% of total revenue. To compensate for the indicators managed account services, where the yields reached record highs. But not even that interesting, and the fact that the company is suddenly greatly increased expenditure on research and development. What is the reason?

Expenditure on research and development

In the third quarter of 2019, which ended June 29, 2019, Apple has invested in research for their future products more than $ 4.2 billion. The company plans to spend in this direction, more than 16 billion dollars for the entire 2019. This is a record figure since 2003.

Apple spending on research as a percentage of total revenues (2012-2019)

Analysts believe that Apple is seriously invested in the development of new technologies due to falling iPhone sales. The main product of the company — smartphone began to rapidly lose its leading position. It is obvious that this state of Affairs is not satisfied with the company and Apple intends to regain the trust of consumers, releasing another innovative model, which at the time was X iPhone.

See also: Americans spend on Apple 50 000 rubles per year. And you?

It is noteworthy that on the background of competitors, Apple is investing in the future development, much less money in percentage terms. For example, in the third quarter, the company spent only 7.9 % of their income in this direction. For comparison, figure Microsoft with 13.4%, and Google is 15.7%.

Where the money goes to Apple

As far as we know, Apple is currently working on several promising areas. The company is developing the first ARM processor for Mac, own modems with support of networks of the fifth generation, and is also involved in projects connected with the technology of augmented or virtual reality.

Also, the Corporation is interested in the automotive field. There is information that Apple has long worked on the ambitious project, dubbed Project Titan.

Initially, this concept involves the development of its own car from scratch. A little later, priorities have changed — the company has refused this idea, dismissing most of the staff. The remaining engineers were soon transferred to other projects.

After some time, it became known that the Corporation has resumed work on project Titan. But the concept has changed dramatically. Now we are not talking about a driverless car, but rather about the software platform to other carmakers.

Since the development is conducted in the strictest secrecy, other details about project Titan yet to be seen.

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