Apple Inc. (NASDAQ:AAPL) is one of the pioneers, in multiple industry niches. Which, is why the company is well-known for having its fingers in many cookie jars, regarding research and development.
There has been a lot of speculation, to what the company is up to. The reason for this speculation is due to the seemingly endless budget, which the research and development branch has been showing lately.
What Is The Research And Development Teams Of Apple Spending Their Monthly Allowance On
The budget may seem large, but the reason behind it is excruciatingly small. According to the company’s financial guru, the reason behind the spending of late is due to Apple investing heavily into the development of various smart chips.
Although it may not seem likely that chips are the realistic answer, it was confirmed on Tuesday, at the Goldman Sachs Technology And Internet Conference, which took place in San Francisco. This conference speech for the company was led by the Chief Financial Officer of Apple, Luca Maestri.
In this speech, Maestri made it clear that the company was spending resources, and placing a higher focus on chips, in order to ensure that in the long run, the company will be able to differentiate itself from its competitors and revolutionize the experience, which their products are capable of bringing to consumers.
Apple’s Research And Development Teams Budget And Comments From Maestri
In the same conference speech, Maestri, stated, “Today, we do much more in-house development of some fundamental technologies than we used to do a few years ago when we did more of that in the supplier base the work we do around processors or sensors.
She went on to explain how doing this is vital for the company, as it can tremendously improve various factors of Apple products, including price, quality, and performance. The focus Apple is placing on this is clearly illustrated by the spending spree of the research and development branch.
Allegedly, throughout 2016 alone, Apple reported spending over $10 billion. This amount is over $2 billion higher, to that of which was spent in the previous year.