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Showing posts with label Marketing costs. Show all posts
Showing posts with label Marketing costs. Show all posts

November 2, 2012

How Apple Manages to get high margins with lower RD spending

How Apple gets away with lower R&D spending  Apple is ranked 12th in terms of what it spends on product research and development . The Company is just a fraction ahead of Hewlett-Packard and just above Dell And it is far below the often innovation-challenged behemoths Microsoft, Nokia, RIM and others.

Asymco's Horace Dediu has put together some chartshowing how Apple’s R&D spending trends. While Apple spent $758 million on R&D during the first fiscal quarter of 2012, it’s a very tiny sliver of the company’s overall sales, which were $46.3 billion

 Bloated bureaucracies spend a lot of money on innovation and occasionally make something new and interesting. Steve Jobs’ insistence on maintaining a startup mentality within Apple (even with 30,000 corporate employees) and the company’s ability to only focus on a few things at a time mean Apple can spend less and get much more for its investment.