Apple R&D spending is at all-time highs.
It’s also spending the largest proportion of its revenue on R&D since 2003.
Apple CFO Luca Maestri hinted that R&D would continue to rise, and said that the company’s $1 billion purchase of 2,000 Intel employees would require “upfront investment.”
Another comparison: Apple’s R&D expense is still a fraction of what it spends on share buybacks. Apple said it spent $17 billion buying 88 million Apple shares during the quarter, over four times what it spent on R&D.