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Apple Ranks 91st in U.S. R&D Spending at $471M

First on TMO - Apple Ranks 91st in U.S. R&D Spending at $471M

by , 11:30 AM EST, December 1st, 2004

Apple Computer ranked 91st among American businesses in spending on research and development in 2003, according to a just announced list from Technology Review magazine.

Apple spent US$471 million in 2003 on R&D, a 6% increase over 2002, or $25 million more than the previous year.

Apple R&D accounts for 8% of its sales, the survey showed. The Mac and iPod maker spends $34,719 on R&D for each of its employees.

The 2004 R&D Scorecard of the top 150 spenders showed Apple sixth among the top nine computer hardware makers in spending. IBM was first among computer companies and 19th overall, followed by Hewlett-Packard in second and 24th overall. In comparison, IBM spent $5 billion on R&D in 2003; HP spend $3.6 billion. IBM had a 7% increase in R&D spending, or $318 million more. HP spent 10% more, or $340 million.

The trend among computer manufacturers in 2003 was to spend less on R&D, with a .4% overall decline.

Observer Comments

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Close Name:Guest
Subject: If it came from a magazine, how can it be "first on TMO

n/t

Close Name:ericl Posts: 27 Joined: 25 Jul 2004
Subject: that's what I was just thinking!

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

Close Name:Bryan -   TMO Staff Posts: 7340 Joined: 11 Jun 2001
Subject:

We were first in the Mac Web to:

A.) Spot the story
B.) Give it context within the Apple and Mac community
C.) Report it with that context

In other words, we aren't claiming it's a scoop, but rather that we we were first to publish an Apple-related story about it in the Mac Web.

Thanks for the notes.

Bryan
Editor
TMO

Close Name:DeepDish Posts: 57 Joined: 25 Jun 2001
Subject: Thank you Bryan for the story

I stop by TMO about five times a day for the latest Mac News.

Thank you for bringing this story to us.

I especially like the TMO spin on stories.

Close Name:zpok Posts: 80 Joined: 06 May 2004
Subject: Surprised

I'm actually surprised that HP spends so much on R&D. The mantra is that Apple does all the research for the home PC market, while now we learn HP spends about 8 times as much...
Or is HP the typical Dell situation, where R&D is mostly spent on sales?

Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
Subject: Re: Surprised

Quote
zpok wrote:

Or is HP the typical Dell situation, where R&D is mostly spent on sales?


I'm pretty sure Dell and HP are VERY different companies.

Dell is like the Wal-Mart of computer makers...low cost through very high volume. I doubt they do very much innovating on their own...their mission is to sell computers as cheaply as they can.

HP, on the other hand, is more like the Apple of the PC world. They're always coming out with media-center computers and things that are a bit different than what everyone else is doing.

It's hardly surprising that HP is the company Apple decided to market the iPod through...they're already open to trying new things, from what I've seen.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject: Re: Surprised

Quote
zpok wrote:
I'm actually surprised that HP spends so much on R&D. The mantra is that Apple does all the research for the home PC market, while now we learn HP spends about 8 times as much...
Or is HP the typical Dell situation, where R&D is mostly spent on sales?
You are right in certain extent. Many companies included sales and maintenance expenses into R&D to look good.

That said, Apple is more efficient in their R&D effort than most companies. Since SJ return, Apple only focuses R&D in area that would bear fruits and not some wishy-washy research that go nowhere. Apple use to have many wishy-washy research going on too. SJ killed off all these research efforts long ago.



Last edited by Mace on Wed Dec 01, 2004 11:51 pm; edited 1 time in total
Reply | Quote
Close Name:Guest
Subject: Re: Surprised

Remember that Hewlett-Packard is an enormous company that does business in much more than just personal computers... take a look at their web site. I'm sure that the majority of their research dollars go to high-profit technologies like medical imaging and very-high-end software/hardware for large companies and government agencies.

Close Name:gslusher Posts: 2088 Joined: 13 Nov 2002
Subject:

Quote
zpok wrote:
I'm actually surprised that HP spends so much on R&D. The mantra is that Apple does all the research for the home PC market, while now we learn HP spends about 8 times as much...
Or is HP the typical Dell situation, where R&D is mostly spent on sales?


HP produces a lot more than PCs--printers, servers, copiers, scanners, and operating systems, but the real key is to look at R&D as a percentage of sales, not the overall amount. Apple is 8%, HP 5%.

Looking down at the software giants, I wonder how much of their "R&D" is just software development--does it include coding & design? GM doesn't count designing new cars as "R&D."

Close Name:AFCdtLoeb Posts: 2533 Joined: 20 Jul 2004
Subject:

Apple is much higher on the list when funding is computed as a percentage of the gross.

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