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Apple Shells Out More Dollars On Research and Development

American technology giant Apple continued to pour more dollars on their research and development, though their expenditure in this department remains inferior as compared to the spending of their competitors.

According to a report by CNET reporter Josh Lowensohn, Apple jacked up the amount allocated for their research and development department, spending $3.4 billion this fiscal year.

Apple has already filed its company’s annual report with the U.S Securities and Exchange Commission Wednesday afternoon. Based on the facts stated on the report, the iPhone makers increased its spending for their research and development by $952 million or 39 percent from last year’s spending.

Apple hiked up its expenditure for their R&D by more than 30 percent for the third consecutive fiscal year. Apple spent $2.4 billion for their R&D, which is $647 million (36 percent) higher from the spending in 2010.

While Apple’s research and development spending skyrocketed up, the amount it allocated on R&D remained small versus its overall sales. In 2011, Apple’s allotted only 2 percent of the money generated from the sales of their products.

Apple’s spending for their research and development department has been under the microscope for years because of the fact that it has allocated significantly less money as compared to the huge money their rivals shell out annually for their R&D.

Software giant and emerging ‘device and services’ power Microsoft spent $9.8 billion for their R&D for this fiscal year and Google allocated $5.2 billion in 2011.

“[Apple] continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy,” Apple said in its filing, according to CNET “As such, the Company expects to make further investments in R&D to remain competitive.”


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