Apple in 2016 spent on research and development is less than Samsung, Microsoft and Huawei
The share of revenues that Apple has spent on research and development (R&D) in 2016, was significantly lower than that of its competitors, the report suggests the European Commission. Although in recent years, the iPhone maker has significantly increased this expenditure, it is nevertheless conceded by this indicator, companies such as Samsung, Microsoft and Huawei.
Large corporations invest a lot of money on research and development. This allows them to create new technologies, improve existing designs, which ultimately allows to produce innovative products. According to the European Commission, Apple spends on research and development is less than its main competitors. So, in the past financial year, this item of expenditure in the “Apple” giant was “only” 7.4 billion euros.
The EC report provides information on 2 500 international companies. A leader in expenditure on R&D is owned by Volkswagen – 13,61 billion euros. In second place was Samsung, which invests in research and development more than any other technology company. Over the past year, the South Korean manufacturer has invested 12.5 billion euros.
The third, fourth and fifth places were shared by Intel, Google and Microsoft respectively. Also in the top ten of tech companies got Huawei, to spend on development this year to 8.35 billion euros.
In spite of that, the iPhone maker has steadily maintained technological leadership in the market. Apple should not be the principle that the brand needs to spend a significant portion of its revenues to innovation to remain the leader, and adheres to the philosophy of its founder Steve jobs, who in 1998 said: “Innovation has nothing to do with how many R&D dollars will be spent”.
According to experts, its Apple’s success partly owes to the size of the company, which motivates the suppliers in the first place to show their most breakthrough technologies and development of the California Corporation.