Samsung breaks R&D spending records, invests $14 billion in new tech

Samsung breaks R&D spending records, invests $14 billion in new tech
Samsung Electronics has received its yearly audit, and the results released the other day show a breathtaking amount of research and development spending. How much? Well, how do $13.8 billion sound to you, almost three times as much as Apple invests here. Yep, that jaw-dropping amount has been ploughed into everything - from new memory tech and factories to make it, through flexible AMOLED displays, to state-of-the-art mobile chipset production. 

Naturally, a sizable chunk has gone into developing the Galaxy S6 and S6 edge, too, and, judging by our hands-on experience with the devices, Samsung might just have a return on that investment this year. 

The $13.8 billion R&D amount accounts for the whopping 7.4% of Samsung's total sales, rising 3.7% compared to the previous year, despite a 10% drop in overall sales. The increased R&D sum came from cutting marketing expenditures, meaning that Samsung is bunkering down for some exciting product launches ahead, too.

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49 Comments

1. khaldoon

Posts: 62; Member since: May 17, 2013

The S6 really shows the result of all of this R&D ! Great job Samsung !

3. AnTuTu

Posts: 1580; Member since: Oct 14, 2012

A real and great Tech company. Kudos to Sammy for all the great innovations through their R & D.

6. timukh

Posts: 295; Member since: Feb 04, 2013

Its almost perfect. I hate for the small battery though. 7.5mm and 3000mAh battery would had been perfect! Other than that the handset is a gem!

16. maherk

Posts: 6627; Member since: Feb 10, 2012

Apple on the other hand have set a 2Billion Dollar budget for Lawyers.

46. AnTuTu

Posts: 1580; Member since: Oct 14, 2012

Or may be even more :(

24. shahrooz

Posts: 792; Member since: Sep 17, 2013

that's why I get happy when samsung phones sell well, cause I know where some of that money goes.

36. Fallen1

Posts: 288; Member since: Nov 14, 2014

I agree I wasnt blown away by the Note 4 Edge, but the S6 edge is flawless IMO. Depending how it does on battery life.

2. vincelongman

Posts: 5579; Member since: Feb 10, 2013

Nice, no wondering they've been innovating so much recently

4. drunkenjay

Posts: 1616; Member since: Feb 11, 2013

thats pretty impressive. i wonder what next years tech would be. foldable phones in the making?!

43. datagrab

Posts: 49; Member since: Feb 13, 2015

foldable phones? sigh....you were probably born in 2007 or something...

5. tech2

Posts: 3487; Member since: Oct 26, 2012

The best display on the market, the most powerful stable SoCon a phone, innovative curve display, the best camera in phones, revolutionary UFS 2 and all that packaged in a sleek design. Good job Samsung !

22. Tritinum

Posts: 471; Member since: May 06, 2014

Don't forget the new CRAZY FAST memory sammy has built. Also most phone use samsung made storage in their devices as well.

39. Kakarotto

Posts: 255; Member since: Dec 07, 2010

He didn't forget. He wrote about UFS 2.0

7. Techfriend

Posts: 34; Member since: Apr 16, 2014

The future is bright for you my dear Sammy,take note other OEMs specially yes i am looking at you Apple !!

8. KinqElessaR

Posts: 45; Member since: Dec 04, 2014

Whenever I see Samsung news, it's all about what they developed or what they invented. Whenever I see Apple news, it's all about how many it sold. Life's unfair.

9. Finalflash

Posts: 4061; Member since: Jul 23, 2013

No, it is perfectly fine. Some companies aspire to post huge numbers and they achieve just that. Some companies aspire to make a huge difference in the world and they achieve that. Apple makes tons of money because that is all that matters to them, Samsung makes a massive difference and pushes the world forward because that is what matters to them.

13. bucky

Posts: 3771; Member since: Sep 30, 2009

Man, that Samsung is really a great, selfless company. They don't even want money. They caught a spanking the last year or two with their flagship line and they straightened up. It happens to every company. Samsung fanboys are what Apple fans were 3 years ago...

32. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Not even remotely close. Apple fan has the record of selling their kidney to buy iPhone/iPad, N.H. cops taser a Chinese woman who bought too many iPhone and the list goes on... Now they are going for new record of paying $17,000 for a geeky looking mickey mouse watch that has a battery life of 18 hours and a lifespan of 18 months before the battery is totally wracked! Not forgetting a Apple troll, by the nick of bucky coming to crash every Samsung article.

14. TAMARETTE

Posts: 182; Member since: Jun 15, 2014

Life isn't fair, but it is consistent. Samsung is about to see the fruit of it's labor borne out with the release of the s6, which is technically more advanced than anything Apple. And the S6 components, from UFS 2.0 to the 14nm finfet process to new LPDD4 modules, etc. These will make a ton of money for Samsung as well, and are already making their way up the pipeline as components for the iPhone 7 and other manufacturers as well.

15. timukh

Posts: 295; Member since: Feb 04, 2013

Look I am an android fan and I have never used any iOS products but still I can say that even Apple is very good at what they do! For example with their dual core processor and 1GB ram chipset, they are giving snapdragon 805 with 3GB ram a run for its money! People can say that due to low res screen but that is not the right thing. Also the touch screens and the colour representations of the screens are very impressive, the reason we dont hear about them is because Apple dont brag about chipsets in particular but when tech sites review their hardware they find that it is equally good. At the end of the day it is all about the sales and they brag about that which is not a bad thing. You can have the best performing product in your hand, but if it doesnt sell, then it isnt worth all the hard work! So inspite of being an android user, I can definite say that even Apple does a lot of good work and yes even I dont think that their prices are justified but it is their company, so they can do whatever they want.

10. derivativex

Posts: 176; Member since: Jul 15, 2014

samsung's revenues are huge that they can afford to splurge on R&D unlike some other companies where profit is "everything"

25. cheetah2k

Posts: 2140; Member since: Jan 16, 2011

Samsung spend up big to stay ahead of the game. Look where apple is now, once divorced from Samsung component supplies, they're crawling back to Samsung now because they have all the right toys.... Even the iWatch has a Samsung fab'd processor.... Apple I ROFLMAO at you

11. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

And all its haters are constantly praising other OEMs that are only collecting pieces of hardware and building a phone haha.. Having wide array of resources is really an advantage coz you get to have a full control of your product - that's why samsung managed to effectively listen to its target consumers.. Just fix the prices of s6 and s6 edge :) Anyway I love my Note 4. I just want the new touchwiz

12. JMartin22

Posts: 2311; Member since: Apr 30, 2013

This is why Samsung is the primary and only competitive alternative to Apple. They not only release quality products, but they actually put the researching and engineering behind all the components that goes into making its product top notch. The changes are simply massive, they see Apple's new product line as a threat and now they are also aware that they simply aren't the only brand in the Android space that occupies presence. All of these realizations have Samsung to deep further into their expansive array of talent and their well-funded assets and put out products that are currently unmatched. I see all the results of this R&D being reflected even further in the Note 5 and the Galaxy S7 down the line as well. They actually read what's published about them in the news, they have analyst scouting general opinion and mood; they aggregate user feedback through surveys and they take the most important and typical complaints and factor that into the next product.

17. livyatan

Posts: 867; Member since: Jun 19, 2013

In next quarter Apple will fall to under 10 billion profit, and Samsung will have its greatest profit ever, thanks to record margins and sales of the S6. I'm calling it now, Samsung will yet again top Apple in profits (it already happened in 2013.)

18. derivativex

Posts: 176; Member since: Jul 15, 2014

Q2 and Q3 are possible like in 2013 as you stated, but if remains to be seen how these new phones will be received by the public

19. mrej201

Posts: 226; Member since: Feb 04, 2015

and this is why samsung have the best tech.. keep investing in the future...

20. sam3k

Posts: 130; Member since: May 02, 2013

Keep up the great work, this is why I admire this company, they are not afraid to test the water's with new tech idea's..

21. sam3k

Posts: 130; Member since: May 02, 2013

Will it be samsung that will give us the first smartphone with hologram!? :)

23. Slammer

Posts: 1515; Member since: Jun 03, 2010

This only plays into my views that Apple "mostly" researches and developes on technology already in place and then charges a king's ransom for its prouducts. But, I also feel Samsung spent an enormous amount of money on a product that doesn't constitute a one size fits all bill. Many of us left other manufacturers in order to enjoy the accessibility of batteries and SD slots that Samsung cornered the niche on. With all this money, Samsung couldn't design a well built, elegant handset that leaves accessibility in place? Samsung will not get my money this time around to recoup the money it spent on just trying to follow status quo. John B.

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