Apple's R&D Spending Is Surprisingly Low

You'd think the company that's produced several category-creating products would spend a big chunk of its cash on R&D. Take Google, for example, which spent 14 percent of its revenue on R&D in the first nine months of this year. But Apple's not like that. The company only spent 2.2 percent of its revenue in R&D over the last nine months, according to a revealing post at ZDNET. And the trend is consistent: that number has been under 5 percent since 2004.

If you believe R&D spending is important, Apple's layout doesn't look good. On paper, their R&D spend looks more like HP's than HTC's or Microsoft's or Google's. On the other hand, Apple's ability to create new, awesome products is undisputed. You know the old marketing saw, "I know half of my advertising is wasted, but I don't know which half?" Perhaps the same applies to R&D and only Apple has figured out which half to cut.

Presented by

The Horrors of Rat Hole Mining

"The river was our source of water. Now, the people won't touch it. They are repulsed by it."

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

The Horrors of Rat Hole Mining

"The river was our source of water. Now, the people won't touch it."

Video

What's Your Favorite Slang Word?

From "swag" to "on fleek," tweens choose.

Video

Cryotherapy's Dubious Appeal

James Hamblin tries a questionable medical treatment.

Video

Confessions of Moms Around the World

In Europe, mothers get maternity leave, discounted daycare, and flexible working hours.

Video

How Do Trees Know When It's Spring?

The science behind beautiful seasonal blooming

More in Technology

Just In