Apple Inc. (NASDAQ:AAPL) financial filing with the Securities and Exchange Commission on Tuesday, July 22nd, the tech titan spent a whopping $1.6 billion on R&D in the just-concluded June quarter. That figure is $425 million higher than the $1.18 billion the firm spent on product research in the same quarter last year.
That means Apple has spent a total of $4.36 billion on R&D over the first nine months of Apple’s fiscal year 2014. This is an increase of 32% versus the same nine-month span in fiscal 2013.
This new information makes it clear that Apple R&D spend is continuing to accelerate, growing much faster in the June quarter than in earlier quarters.
Apple R&D driven by new products
This big increase in research and development spending comes as Apple Inc. (NASDAQ:AAPL) is gearing up to enter several new product categories, and also related to major revisions to existing products. Most notably, a complete redesign of the iPhone (the much anticipated “iPhone 6”) is expected this fall, and the company is also widely expected to introduce an all-new “iWatch” with a slew of new features. Rumors abound regarding other Apple products under development, including an upgrade of the iPad Air (iPad Air 2) and the iPad mini with Retina display.
It should be noted that the Apple R&D investments made in the June quarter may not be directly related to products set for imminent release, but the amount being spent is a clear signal that Apple Inc. (NASDAQ:AAPL) is planning to continue its tradition in existing and new markets in the future.
Statement by Apple CEO Cook
Back in April, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook mentioned the need to continue to increase R&D investments as a key reason why the firm needs to keep plenty of cash on hand. Of note, as of the end of the June quarter (third fiscal quarter), Apple reported a total of $164.5 billion in cash, with $133.7 billion of that offshore.
“We’ll continue to innovate by investing in research and development and capitalizing on our strengths in hardware, software and services,” Cook said in an interview in April.