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For the first time in at least 30 years, Apple
is spending more than 10 cents of every dollar it brings in on research and development, one of the strongest signs yet that the iPhone maker is dedicating big money to its artificial intelligence ambitions.
Apple’s R&D spending hit 10.3% of revenue in the March quarter, up from 7.6% in the prior period and 9% in the same quarter a year earlier. And while sales jumped 17%, the fastest rate of growth for any quarter since 2021, R&D climbed twice as quickly, increasing almost 34% from a year prior.
With CEO Tim Cook preparing to step down following a 15-year run at the helm, he’s finally putting the kind of muscle into AI that investors have been seeking since OpenAI kicked off the generative AI boom in late 2022. Gene Munster, managing partner at Deepwater Asset Management, said Apple’s push puts it closer to the hyperscalers, noting that across Google
