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Big changes coming? Apple spends $500 million extra in R&D

Posted: , by Michael H.

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Big changes coming? Apple spends $500 million extra in R&D
The call for Apple to surprise us has been going on so long now that even the Apple faithful are getting in on it. iOS hasn't seen any major UI changes in years, and while the iPhone is designed well, that design hasn't changed much in the past few years except to get longer and a metal back. But, word has it that Apple increased its R&D budget over the past 6 months by $500 million, prompting the question: is something big on the way?

That is an increase of 33% in Q2 compared to Q1, and it puts Apple on track to spend $4 billion on research and development this year. In the first six months of its fiscal year, Apple has already spent $2.13 billion on R&D, which is extra impressive given that the company only spent $1.6 billion for all of the previous fiscal year. Apple said that the extra spending was:
directly related to timely development of new and enhanced products that are central to the Company’s core business strategy. As such, the Company expects to make further investments in R&D to remain competitive.
That seems to point not only to funding for the rumored iWatch (which would be at least one "new" product), but improvements to the existing lineup of Apple products. And, if you think that spending over $2 billion in R&D is a ton of money (which it is), just keep in mind that figure represents just 2% of Apple's net sales. 

Now, if you'll excuse us, we have to fish around in the couch for quarters so we can afford to do laundry...

source: Ars Technica

25 Comments
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posted on 25 Apr 2013, 00:17 10

1. wendygarett (unregistered)


Seriously? Only 500millions? and end up adding one more rows of icons? that's so low Apple...

posted on 25 Apr 2013, 00:30 2

4. anywherehome (Posts: 971; Member since: 13 Dec 2011)


thats why Apple's customers buy just outdated, old iPhones 4s and old iPads, they don't expect any significant innovation

but why the hell they are buying so outdated products for such a price? = marketing brainwashing = Google should do more in Marketing area to show how inferior iToys are....Google's marketing and PR realy suck and thats the reason they pay for it with negative PR in print

posted on 25 Apr 2013, 01:24 22

16. sss_ddk (Posts: 58; Member since: 05 Mar 2013)


Reasons to go/stay with apple:
-simple clean UI (not everyone wants customizable, not everyone wants root...)
-iTunes/AppStore (If you started buying apps and music, and you spent some money, you will stick to the platform longer)
-Build Quality. Apple may not be the best in every area, but they do ship beautiful products, with a predictable build quality. You can always expect good camera, good calibrated screen, good after market service (i'm not saying perfect..this does not exist)
-On contract phone prices usually put iphones on par with other high end phones
-Design stability. I know that we usually want new and shinier everytime, but keeping your design longer gives more value to your product. This is one of the reasons german car makers do not change their design very often.It just keeps your (expensive) car from seeming outdated after only a year or so. It also gives non-techhies easier upgrade path.
Of course, if you ask such questions, it means you the above is not your number one priority.But the people who buy apple are not all sheep. they just have a different idea of the product they want.

posted on 25 Apr 2013, 02:32 8

21. anywherehome (Posts: 971; Member since: 13 Dec 2011)


1 ) you lie...there was a study, Android has the sam simplicity, even simpler to share any object (easily to copy, paste)
2) yes, thats why Google should do any marketing action = give money to switch
3) you lie, SGS3,4 Xperia Z vs antennagate, 25 % of iPhones have broken glass ;)
4) so what?
5) design stability = non innovative, just an iConboard :-D

posted on 25 Apr 2013, 00:50 12

7. Trex95 (Posts: 518; Member since: 03 Mar 2013)


Tell me what did galaxy s4 offer?! check the real reviews lot of reviewer rate it 8 out of 10 lol.

posted on 25 Apr 2013, 01:04 4

8. wendygarett (unregistered)


That because most reviewers are blind and paid by Apple...

posted on 25 Apr 2013, 04:33 4

23. Trex95 (Posts: 518; Member since: 03 Mar 2013)


Ok if we said that all phones reviewers paid by Apple. How come HTC one got 8.3, note 2 got 8.5 and nexus 4 got 8.3 out of 10?!!

posted on 25 Apr 2013, 06:21 3

24. xperiaDROID (Posts: 4812; Member since: 08 Mar 2013)


If a Huawei smartphone get 10 out of 10, what will you say?

Most reviewers are blind and paid by Huawei?

posted on 25 Apr 2013, 01:14 9

12. Mxyzptlk (Posts: 2843; Member since: 21 Apr 2012)


Might as well say S3.5

posted on 25 Apr 2013, 01:19 2

14. eisenbricher (Posts: 964; Member since: 09 Aug 2012)


Still miles ahead of iP4+S+Extra row of icons

posted on 25 Apr 2013, 01:18 7

13. eisenbricher (Posts: 964; Member since: 09 Aug 2012)


Dude what the heck? S4 is truly awesome device. I used to be a SS hater but they managed to change my opinion about them. There are so many features S4 offers compated to Apple iPhone. iP5 feels like a joke in front of S4. Agree or don't, it's a fact. TV-out, extra sensors, big, lovely SAMOLED screen, sensitive touch, eye tracking, MHL 2.0, Wolfson audio DAC, excellent battery backup, removable back, powerful flash, awesome software support and updates by SS... are only few of all features. Take your pick or be blind to follow Apple and their small phone.

posted on 25 Apr 2013, 01:20 5

15. fanboy1974 (Posts: 995; Member since: 12 Nov 2011)


If people don't like the S4 you can choose the HTC One. Samsung is not the face of Android. It's a collection of OEM's and I like it that way. With Apple your forced into one model per year. Never place your eggs into one basket.
I really didn't like the fact Samsung was dominating so hard. Competition within Android is a good thing. I bet Google feels the same.

posted on 25 Apr 2013, 01:07 1

10. haseebzahid (Posts: 1775; Member since: 22 Feb 2012)


lol 500million$ worth another row epic R&D or maybe new design well that will cost 50trillion R&D on apples butt

posted on 25 Apr 2013, 01:37 6

18. edgabimbam (unregistered)


get a life geek, if you spend more time with your smartphone than with your friends, relatives, then go for android...

posted on 25 Apr 2013, 01:52 3

19. quakan (Posts: 1078; Member since: 02 Mar 2011)


$500 million extra in R&D is nothing is to scoff at. We may have to wait and see when and how that pays off for Apple. I honestly don't mind waiting on the latest and greatest technology. I say let them take their time (just not as long as Blackberry) and make the wait worth while.

posted on 25 Apr 2013, 00:18 4

2. eisenbricher (Posts: 964; Member since: 09 Aug 2012)


I really hope apple would be able to present something new. C'mon make it a little less restricted, Apple folks! Phones shouldn't feel like a Jail at all...

posted on 25 Apr 2013, 00:34 1

5. anywherehome (Posts: 971; Member since: 13 Dec 2011)


forget, people need to be led, at least in US, they are not capable to make their own decision....sadly
if it is not true: why the hell they still vote for the same people that lied to them about existence of mass destruction weapons and murdered thousands of their own US soldiers in Iraq for a lie..... etc etc?

wake up! everyone HAS TO vote for the completely new political parties without "old" politicians! otherwise there is no change and there always be wrong doing companies like Apple or Microsoft:
bit [dot] ly/RYzOPP

posted on 25 Apr 2013, 01:07 3

9. Reluctant_Human (Posts: 805; Member since: 28 Jun 2012)


I read your comment 3 times already and have to figure out what your point is.

posted on 25 Apr 2013, 01:56 1

20. quakan (Posts: 1078; Member since: 02 Mar 2011)


Yeah me too. I guess he decided he would use this moment to get out his hidden political agenda. I just wish he had not vented out to the Phonearena community and saved it for someone else.

posted on 25 Apr 2013, 02:59

22. anywherehome (Posts: 971; Member since: 13 Dec 2011)


just a proof they don't want to think, they want to be led :)

posted on 25 Apr 2013, 00:27

3. clevername (Posts: 1407; Member since: 11 Jul 2008)


This better amount to something spectacular.

posted on 25 Apr 2013, 00:39 5

6. rahulz (Posts: 116; Member since: 25 Feb 2013)


so WOZ vision actually turns out to be true....
Hope apple put the money to something worthy...
Looking forward to june10

posted on 25 Apr 2013, 01:09 3

11. Reluctant_Human (Posts: 805; Member since: 28 Jun 2012)


WOZ being tapped as the CEO would be the only thing that could ever get me remotely excited about a new apple product or announcement.

posted on 25 Apr 2013, 06:22 1

25. xperiaDROID (Posts: 4812; Member since: 08 Mar 2013)


Steve Wozniak is a genius, you know.........

posted on 25 Apr 2013, 01:30 1

17. MartianMe (unregistered)


rumored iWatch (which would be at least one "new" product)"".....new product for apple? because there are a couple of smart watches out there already...just saying..

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