Apple is accused of continuing to reduce funds for technological innovation

Telset.id, Jakarta – Apple is accused of continuing to reduce its funds for technological innovation, even though the company paid $ 12.7 million last year or reached Rp 182 billion for research and development.

Bernstein, Tony Sacconaghi said that the amount of money spent by Apple in research and development last year was more important than investing in new products for the period 1998-2011. The period when the company generated the iPhone, the iPad and the iPod, as reported by Phonearena Saturday (14/7/2018).

Sacconaghi believes that Apple has spent only 2% of the free circulation of funds (19459006) for research. This figure is considered very low compared to other companies in its clbad, which do not hesitate to set aside up to 25% of funds allocation. Free cash flow represents the remaining funds of the corporation after deducting capital expenditures, for example for buildings and equipment.

Apple spends 5.1% of its revenue on research and development. While other technology companies that generate gross margins from Apple (38%), spend 10% of the money for research. Because of this Apple is considered necessary to double the investment for research to match other companies.

Read also: Prepare three new iPhone, Apple takes the iPhone X

Apple is currently one of the best companies among the ten technological giants in America states. However, Tim Cook's company ranked only sixth in research and development spending

. Expected to increase spending on research on producers smartphones in accordance with the resulting innovation. In addition, Apple requires significant maintenance so that their research can continue to develop products and services.

Previously, BlueFin Research Partners said that this year, Apple will release three new iPhone series that have the same design with the iPhone X. will stop production iPhone X also iPhone SE.

BlueFin Research Partners said, the strategy of stopping the production of the iPhone X is actually related to sales issues recognized by stagnated Apple. The demand for the iPhone X by the market becomes lonely while Apple loses.

According to badysts from the same firm, Apple is focusing this year on plans to produce another series of more promising phones. According to testimonials, the latest Apple phones will be named iPhone 9 iPhone 11 and iPhone 11 Plus. [WS/IF]

Source: Phoneaborne