Apple to Spend Even More on R&D, Continue to Scare Piss Out of Competition

by James R. Stoup Nov 10, 2008

In 2008 Apple spent over $1 billion on R&D, a %40 increase from the previous year. And I don't expect 2009 will be any different. Adding to my amazement was the realization that software development was not included in that figure. That means that Apple is spending a billion dollars a year researching new hardware. In fact, here is a breakdown of their past four years:


  • 2005 - $535 million
  • 2006 - $712 million
  • 2007 - $782 million
  • 2008 - $1.1 billion
  • 2009 - ???


These numbers do not portend well for Apple's competitors in the cell phone industry. Of course, with that kind of cash getting poured into R&D I would say that anyone who makes a mobile electronic device should worry that Apple might invade their market. Specifically here are some groups that might want to be on the lookout for some competition from Apple. 

XM Radio - It just seems like a matter of time before Apple launches an effort to make this obsolete. It just seems like that Apple will eventually make owning an iPhone and am XM device redundant.

Electronic Books - Amazon beware, as nice as the Kindle is, the moment Apple releases a device in this space I will be the first in line to own one. The Kindle almost had me, but restrictive access rules ultimately turned me off. The challenge will be to release something before Amazon turns Kindle into a world class product.

GPS Devices - Ha ha, ok, no just kidding. GPS devices are already dead, they just don't realize it yet. 

Remote Controls - The iPod Touch/iPhone has the potential to be the ultimate programable device. There are already universal remotes that only need to be pointed at the remotes they will replace and they can automatically sync with them, so it isn't as if this is really such a far fetched notion. Given enough time I think Apple will make the case that everyone needs an Apple TV in their home theater and of course the ideal remote is an iPhone. 




  • What is Apple cooking up that’s a major product prospect? The Street mumbles about a smart television set, but I dunno. What I do know is Apple’s research and development budget is a comparatively low percentage of revenues at 3 percent.-Yochanan Berkowitz

    Ana had this to say on Aug 24, 2011 Posts: 76
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