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TheStreet: ‘Apple: Frugal to a Fault?’

An column by Troy Wolverton on TheStreet.com today looks at Apple’s spending on research and development. According to the report, while Apple’s profits have risen significantly, the company has not increased its R&D budget accordingly. “Even while Apple’s revenue has skyrocketed in recent years — and even as expectations for future products and success have exploded — what the company has spent on R&D has risen only modestly,” writes Wolverton. “As a portion of overall sales, such expenses have actually fallen by more than half. Though analysts generally praise Apple for its frugality, some warn there’s a limit to how much longer the company can squeeze juicier near-term profits out of its R&D line.”

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