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Apple Spent $3.4 Billion on Research in 2012

By - Source: Apple | B 38 comments

One billion dollars more than 2011.

Apple has a lot of money. Earlier this year, the company's co-founder made headlines when he said he thought the company would eventually $1000 per share making it a trillion-dollar company. For now, the company has a market cap of just over $560 billion. So what does a company like that spend on research?

According to an SEC filing the company published yesterday, Apple spent an extra billion dollars in research in 2012 compared to research spending for 2011. The company wrote in the filing that it depends heavily upon its ability to 'ensure a continual and timely flow of competitive products' and that it continues to develop new products. Total R&D spending for the year was $3.4 billion. This is compared to $2.4 billion in 2012, and just $1.8 billion the year before, in 2010.

Though it might sound like a huge chunk of change, it's still quite a small amount relative to Apple's net sales. Apple reported that this year's $3.4 billion is just 2 percent of net sales. This is equal to the percentage of net sales in 2011, and actually less than the 3 percent of net sales in 2010. It's also not that much when you look at what others are spending. The Verge points out that Microsoft spent $10 billion, which is 15 percent of its net sales.

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Top Comments
  • 24 Hide
    gregor , November 2, 2012 11:46 AM
    A company that just recycles others tech and packages it up in shiny cases doesnt need to spend much on R+D I guess.
  • 22 Hide
    Pinhedd , November 2, 2012 11:52 AM
    gregorA company that just recycles others tech and packages it up in shiny cases doesnt need to spend much on R+D I guess.


    Pretty much. Microsoft spends around $10Bn per year on R&D or more. IBM probably spends more than that.
  • 21 Hide
    thescifi55 , November 2, 2012 11:51 AM
    ... and came wp with Ipad Mini.
Other Comments
    Display all 38 comments.
  • 12 Hide
    amk-aka-Phantom , November 2, 2012 11:36 AM
    Quote:
    One billion dollars more than 2011.


    That's one billion these ba$tards forced out of Samsung!
  • 15 Hide
    deadlockedworld , November 2, 2012 11:37 AM
    amk-aka-PhantomThat's one billion these ba$tards forced out of Samsung!


    So it must have gone to the "thermonuclear war" division?
  • 24 Hide
    gregor , November 2, 2012 11:46 AM
    A company that just recycles others tech and packages it up in shiny cases doesnt need to spend much on R+D I guess.
  • -7 Hide
    jacobdrj , November 2, 2012 11:46 AM
    lostmyclan3.4 billon to make crap How yeah

    It's expensive to 'think different'.

  • 21 Hide
    thescifi55 , November 2, 2012 11:51 AM
    ... and came wp with Ipad Mini.
  • -4 Hide
    thescifi55 , November 2, 2012 11:52 AM
    thescifi55... and came up with Ipad Mini.

  • 22 Hide
    Pinhedd , November 2, 2012 11:52 AM
    gregorA company that just recycles others tech and packages it up in shiny cases doesnt need to spend much on R+D I guess.


    Pretty much. Microsoft spends around $10Bn per year on R&D or more. IBM probably spends more than that.
  • 14 Hide
    infernocy , November 2, 2012 11:56 AM
    Apple gives $3.4 Billion to other companies to do the Research for them in 2012


    there fixed it for you
  • 12 Hide
    shardey , November 2, 2012 11:59 AM
    "This is compared to $2.4 billion in 2012, and just $1.8 billion the year before, in 2010."

    Sound like it should be 2011

    Anyway, Samsung is building a 385k sqft R&D center near Google. Competition is always great.
  • 13 Hide
    extremepcs , November 2, 2012 12:09 PM
    and the best they could come up with is a mini iPad (for light flow days) and a new dock connector to milk the sheep out of more money for adapters?
  • 8 Hide
    Anonymous , November 2, 2012 12:10 PM
    Probably the 'glued to the case' batteries and the iOS 6 Maps are not included in those money. Oh, but the innovations...
  • 12 Hide
    vauxhall , November 2, 2012 12:16 PM
    What is the result of the research?
  • 13 Hide
    alexmx , November 2, 2012 12:30 PM
    vauxhallWhat is the result of the research?


    a 7.9 in ipad lol
  • -3 Hide
    grit5 , November 2, 2012 12:32 PM
    The results I see are A6/6X, Retna Display laptops, and using "Fusion" hard drives in the latest iMac. Seems like decent enough work from R&D
  • 6 Hide
    freggo , November 2, 2012 12:39 PM
    grit5The results I see are A6/6X, Retna Display laptops, and using "Fusion" hard drives in the latest iMac. Seems like decent enough work from R&D


    Apple does not design nor make the display or the the hard drive; just the custom design of the A6 seems tho be their own. Prob mostly to insure they can include some mechanism for the OS to be working only on the Apple chips and therefore keeping the clone makers away.
  • 7 Hide
    soo-nah-mee , November 2, 2012 12:41 PM
    clubsaucekillerMicrosoft spends $10 billion and comes out with... what? Surface? Apple is getting a lot more done with a lot less.
    Really? How about Windows 8 and Windows Phone 8 (flat out BETTER than iPhone, save for the sparse ecosystem), just to name a couple? Microsoft is not a hardware company and you list the FIRST computer they have ever built as the only product of their research?
  • 11 Hide
    Camikazi , November 2, 2012 12:45 PM
    grit5The results I see are A6/6X, Retna Display laptops, and using "Fusion" hard drives in the latest iMac. Seems like decent enough work from R&D

    You are right on the A6/X that is an in-house item (their first in-house CPU BTW) now the display and the fusion drives didn't take that much R&D since they didn't do it. Those things were researched and created by others all Apple did was tell the makers what they wanted and let them do the work, doesn't seem like much R&D there really.
  • 6 Hide
    Old_Fogie_Late_Bloomer , November 2, 2012 12:45 PM
    amk-aka-PhantomThat's one billion these ba$tards forced out of Samsung!

    Perhaps if they actually get the money (though I suspect, in the end, they will not), they can use it to try to make their phones more competitive on the open market, rather than having to rely on attempts to compete via litigation...
  • 6 Hide
    gogogadgetliver , November 2, 2012 12:46 PM
    R&D Dept: "Well the results are in and we have had a breakthrough. You see we are going to make the same device bigger than this one but smaller than that one. It's revolutionay."

    Tim Cook: "By golly that is amazing. This will change everything. We have to do more though."

    R&D Dept: "I think with more funding we might be able to come up with several more colors."

    Tim Cook: "Unbelievable. This will remake the world as we know it. Make it happen."

    ...meanwhile...

    Steve Jobs: "You know if you sent me a new pancreas this shat wouldn't be happening"

    Jesus: "I know, I know. I should have yanked it out of Cook. I really thought the liver would have bought you enough time."
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