A new Apple? R&D costs expected to hit $10 billion this year

A new Apple? R&D costs expected to hit $10 billion this year
As we mentioned recently, the flattening of iPhone sales means that Apple will be getting increasingly interested in finding its "next big thing" because the smartphone market is saturated and without another product to pivot to, Apple could be lost (at least as far as investors are concerned). A new report backs up that idea with the news that Apple is planning a massive bump to its research and development budget.

According to a new report, Apple's R&D budget is expected to hit an absurd $10 billion in 2016. For context, Apple's R&D budget in 2012 was only around $3 billion. The theory is that Apple is working hard to find the next product to boost its lineup, because upgrading existing software services and hardware doesn't add up to a number that big, and there have been plenty of rumors in that space. There are the unending reports of Apple working on a car (more recently the rumor is a self-driving car), as well as the fabled Apple TV. It's widely expected that Apple is also working on virtual reality products as that space heats up. 

Regardless of what Apple has in the pipeline, it's safe to say it will likely be a departure from the mobile-centric Apple that we've known for the past 9 years. Of course, Apple isn't the only company pouring a lot into R&D. As of 2014, Samsung, Google, Microsoft, Intel and Amazon had already hit $10 billion per year in R&D, so Apple certainly isn't alone in looking for the next big thing in tech. 

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22 Comments

1. MEeee

Posts: 412; Member since: Oct 19, 2011

Slap a fruity logo on the Samsung or LG TVs, sell them twice the normal price and the iDiots would sell their children/kidney to buy them.

3. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

21. sgodsell

Posts: 7187; Member since: Mar 16, 2013

No it couldn't be true, because Apple doesn't want to promote VR. Because everyone including Apple knows that the iPhones give the worst VR experience. They have such a poor resolution. Apple likes to keep the resolutions low so they can boast and brag to everyone on how fast they can push a few pixels on their screens. So please be nice and tell the truth MEeee.

8. ctdog4748

Posts: 797; Member since: Mar 05, 2016

OMG I see what you did there!!!! The lower case 'i' in front of the upper case 'D', makes the word idiots into iDiots, kinda like the lower case "i" that Apple uses. You are such a brilliant, original genius!!!! Also funny too, I hope your post gets millions of upvotes as a testament to your creativity!!!

11. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Sounds like you could really make use of this innovative cream... https://db.tt/YjHrQa1v

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Wow, we've been doing the iDiots thing for a while. Where you been hiding? :-)

19. ctdog4748

Posts: 797; Member since: Mar 05, 2016

I was being sarcastic.

22. ibend

Posts: 6747; Member since: Sep 30, 2014

that not sarcastic, thats just plain stupid

14. srgonu

Posts: 535; Member since: Feb 13, 2012

26. yyzamin

Posts: 382; Member since: Aug 26, 2015

Where are SanDisk now? I'm going to trade in my iPhone and buy a SanDisk Sansa Phone

2. Ahmad_Alhatmi

Posts: 9; Member since: Jan 15, 2016

And the results are?

10. ZeroCide

Posts: 810; Member since: Jan 09, 2013

NOTHING!..... maybe upgrades to copy and paste.

23. ibend

Posts: 6747; Member since: Sep 30, 2014

they'll use that money to patent whatever they find in indiegogo and kickstarter

13. ph00ny

Posts: 2025; Member since: May 26, 2011

Rumor has it that they're investing into other sectors hences the drastically increased R&D amount

4. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Beyond time they got off their asses and put that $200B to use...here's hoping something actually innovative and useful without any reality distortion field materializes.

7. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They're probably investing in a larger reality distortion machine though, so kinda pointless to praise the move.

9. ZeroCide

Posts: 810; Member since: Jan 09, 2013

That is a lot of money for a copy machine.

12. siddharthayadav202

Posts: 286; Member since: Apr 23, 2016

Welcome Apple to $10 billion R&D spender. But still quite beloe Samsung even after making higher profit.

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Well if they actually do spend that much, it wont be just for the iPhone. It has to be for something else. Because Samsung spent about $14B and look how many products they make. Apple only makes 2, the Mac and the iPhone (and its siblings), so the rest must be for Apple Car or Apple TV (an actual TV) or something else. Looks like the next iPhone will cost $100 more so they can justify that spending...lol

20. ameran

Posts: 344; Member since: Dec 04, 2013

Do they want to use that money to innovate or copy others and call them their own products with a new fancy name?

24. ibend

Posts: 6747; Member since: Sep 30, 2014

they'll use that money to patent whatever they find in indiegogo and kickstarter and patenting some shabby tech to USPTO isnt cheap, lol

25. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Good Move fruity!

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