Apple R&D Impact Trounces Intel's, Cisco's, & Microsoft's - InformationWeek
IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
4/8/2010
12:15 PM
Bob Evans
Bob Evans
Commentary
50%
50%

Apple R&D Impact Trounces Intel's, Cisco's, & Microsoft's

Based on R&D spending over the past four years, Apple ($4.6 billion) has been massively outspent by Microsoft ($31 billion, or 7x), Cisco ($19 billion, or 4x), and Intel ($23 billion, or 5x). But over that same period, Apple has blown away those companies in financial performance and set remarkable standards for ROI on R&D.

Based on R&D spending over the past four years, Apple ($4.6 billion) has been massively outspent by Microsoft ($31 billion, or 7x), Cisco ($19 billion, or 4x), and Intel ($23 billion, or 5x). But over that same period, Apple has blown away those companies in financial performance and set remarkable standards for ROI on R&D.From a seekingalpha.com blog post by Stephen Rosenman:

Apple is getting a lot for its R&D buck, humbling other large tech companies. AAPL spent a total of $4.6 billion over the last four years. Were those dollars well spent? Revenue in 2006 was $25 billion. In 2009, sales climbed to $43 billion. Its market cap, has tripled over the since the start of 2006.

So from Rosenman's blog post, here are the 4-year revenue gains for each of those companies, preceded by its 4-year R&D investment:

*Apple: $4.6 billion R&D investment, revenue from $25 billion to $43 billion, up 72%

*Microsoft: $31 billion R&D investment, revenue from $44 billion to $58 billion, up 32%

*Cisco: $19 billion R&D investment, revenue from $28 billion to $36 billion, up 25%

*Intel: $23 billion R&D investment, revenue flat at $35 billion

We all hear a great deal-and rightfully so-about the genius of Apple CEO Steve Jobs, and COO Tim Cook is beginning to receive his due acknowledgements. But given the astonishing numbers above, it's worth highlighting some of the extraordinary people behind Apple's R&D machine:

*Scott Forstall, senior VP, iPhone software

*Jonathan Ive, senior VP, industrial design

*Bob Mansfield, senior VP, Mac hardware engineering

*Mark Papermaster, senior VP, devices hardware engineering

*Bertrand Serlet, senior VP, software engineering

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll