Apple last week released its results for its third fiscal quarter of 2019, which, according to Cupertino, was the company's largest quarter in June. In addition to the good profit margin (thanks to Ma's service revenue growth), the company's R&D investments have also reached a new one-quarter historical index, as CNBC.
During the fiscal third quarter of 2019, Apple invested $ 4.2 billion R&D, about 7.9% of its total revenue. According to the CNBC, this is the largest percentage invested since 2003 (when Apple sold only iPods and Macs), as illustrated in the following chart shared by PCMag.
If Ma's investments continue at this peak, the company will invest more than $ 16 billion (amount invested in 2018) in R&D this year.
Although it has set a new historical index, Apple's R&D investments are still behind those of other technology companies in reality, Ma has never been the largest investor in this sector. In the last quarter, for example, Microsoft invested 13.4% of its R&D revenue, while Google invested 15.7%.
The increase in R&D spending comes as Apple's golden egg hen, the iPhone, fell in sales. IPhone revenues in the last quarter were down 12% from the same period last year. That's why Apple is investing in key technologies that can power devices that haven't been built yet, but developing and exploiting cutting-edge technology comes at a cost.
Despite the significant amount, it is difficult to know where all this money is concentrated. A smaller portion of this value is likely to go to products that have already been launched, while the larger amount should go towards discovering new technologies, which could equip future products, such as those related to “Titan Project” and to Apple Glass (which may have been temporarily suspended).