360° Coverage : Apple Drastically Increased R&D Expenditure in 2013

Apple Drastically Increased R&D Expenditure in 2013

Apple's research and development investments in 2013 jumped to $4.5 billion, the highest-ever amount spent in one year

Nov 2 2013, 1:38pm CDT | by

Apple Drastically Increased R&D Expenditure in 2013
Photo Credit: Getty Images

Apple filed on Wednesday with the U.S. Securities and Exchange Commission its annual 10-K Form. One piece of information that came out of it was the amount Apple spent for the research and development. The sum filed was $4.5 billion, a serious increase from $3.4 billion in 2012 and $2.4 billion in 2011.

Apple mentioned in the form that the amount spent for R&D stayed pretty consistent with the company's net sales, which have also significantly grown.

The growth in R&D cost was apparently driven by a large personnel increase and related expenses necessary to support the expansion. As Apple noted in the filed document, the company believes that R&D investments are crucial to its growth and marketplace position. It is further noted that the R&D expenditure is directly related to the development of new and improved products central to the Apple's core strategy.  Further R&D investments are vital in order to remain competitive.

Actually, Apple is spending a relatively small amount considering its total cash position. As of the end of the third quarter, Apple had almost $150 billion cash available, about $111 billion overseas.

Apple also revealed that its 2013 capital expenditures were about $7 billion:  $499 million for its retail stores, and $6.5 billion for different other capital costs such as different product tooling, equipment for manufacturing process, infrastructure and corporate facilities.

As it informed the SEC, Apple is planning on spending more than $11 billion on capital expenditure in 2014. About $550 million will be spent for retail stores, a great part of that amount for about 30 new planned stores and 20 existing stores’ remodels.

Other interesting facts revealed in the Apple’s 2013 10-K were: Apple currently has 24,710 shareholders and about 80,300 full-time employees, about 42,800 of them working in the retail. The company owns or leases almost 19.1 million square feet of space, mostly in the U.S. Apple owns 1,428 acres of land in different locations. In 2013, Apple paid in total $10.5 billion in dividends, compared to $2.5 billion paid in 2012.

Source: Apple Insider

 
 
 

<a href="/latest_stories/all/all/25" rel="author">Bijon Kumar Pramanik</a>
Bijon Kumar Pramanik is an experienced technology writer working since years in the consumer electronics field.

 

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