The above graph represents Apple Research and Development expenses by quarter, and the percentage of Apple’s total revenue spent on R&D activities during the quarter. Apple R&D spending constantly increasing with each passing year. Apple R&D expenses in fiscal Q3 2020 increased an appreciable 11.8% YoY to a record-high of $4,758 million ($4.8 billion). On a quarterly basis, the company recorded a 4.2% QoQ increase in its R&D expense.
Apple R&D Expenses by Quarter: History
|Source||Apple’s official Reports, SEC Filings|
|Note||Apple fiscal year starts from October 1st|
Apple has constantly been spending a significant amount of its total revenue on research and development for the last few years. In fiscal Q3 2019, the company spent a 7.91% of its total revenue on R&D, highest since fiscal Q2 2003 when the company spent over 8% of its revenue on R&D.
One must note that in fiscal Q1 2001 when Apple spent over 10% of its total revenue i.e $102 million on R&D – the highest-ever percentage of revenue spent on R&D.
It was the first time in fiscal Q1 2018 when Apple’s total R&D spend exceeded $3-billion mark. Total $3,407 million ($3.4 billion) was spent on research and development, representing 13.7% QoQ growth.
Interestingly, fiscal Q1 2013 was the first time when Apple’s R&D expenditure crossed the $1-billion mark in history. The total expenditures for research and development increased from $906 million in FY Q4 2012 to $1,010 million in FY Q1 2013, representing over 33% YoY growth.
Surprisingly, in fiscal Q3 1997 (Apr-Jun 1997), Apple’s R&D investment suddenly declined over 28% QoQ to just $101 million, from $141 million in fiscal Q2 1997. The decline in R&D continued till fiscal Q4 1998 when only $73 million was spent on R&D – that marks the least Apple has ever spent on R&D in a quarter.
About Apple Inc: Additional Information
Apple Inc. (NASDAQ: AAPL) was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company is popularly known for its line of smartphones called iPhones. Apart from iPhones, the Cupertino giant develops and sells iPad, Macbooks, iPod, Apple Watches, Apple TV, HomePod, and some other online services.
Apple’s first product was Apple I, a desktop computer that was designed and hand-built entirely by Steve Wozniak.
On December 12, 1980, Apple went public, by selling 4.6 million shares at $22 per share.
On January 9, 2007, Steve Jobs unveiled the first generation of iPhone at the Macworld 2007 convention, in San Francisco. However, it was launched on June 29th in the United States, at the price of $499 for the 4GB model and $599 for the 8 GB model. After the initial hiccups, the worldwide sales of iPhone skyrocketed from fiscal Q4 2008, when Apple recorded nearly 9X jump in the sales of the iPhone.
After 10 years, in September 2017, Apple Inc. celebrated its 10th anniversary of iPhone by launching its most-expensive, most-innovative iPhone X, along with iPhone 8 and 8 Plus.
With a brand value of $205.5 billion, Apple tops the list of World’s Most Valuable Brands 2019 by Forbes, for the ninth year in a row.
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