RIM Spends More On R&D Than Apple

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According to a finding from Toronto Globe and Mail, Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) is the top Canadian company in research and development spending. Not only this, but RIM outperforms Apple Inc. (NASDAQ:AAPL) when it comes to spending on research and development.

RIM Spends More On R&D Than Apple

The study from Toronto Globe and Mail examines the R&D trends at 380 international corporations. Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), which devotes 8.5 percent of net sales to R&D, is the top-rated Canadian firm and 205th among all companies in the study group. Apple Inc. stood at 348th place with 2.2 percent of net sales on R&D.

Selection of companies for the study was based on “international companies that spend more than $100-million (U.S.) a year on R&D, and whose expenditures in this area were greater than their sales”.

The research report said “On the other hand, Apple Inc. (NASDAQ:AAPL), which you might have expected to be high in the ranking, finished way down at No. 348, spending only 2.2 per cent of net sales on R&D. The top Canadian company was Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), at No. 205. It spent 8.5 per cent of sales on R&D”.

“If there’s a lesson here, it’s that research does appear to pay off, although it’s no guarantee of success,” writes analyst Michael Bowman.

Suggesting that spending on R&D should be taken into account while screening for stocks, report said, “the top 20 companies on the screen (shown) have averaged over 44.5 per cent return year to date” and added “Next time you are screening for stocks, consider looking at each company’s R&D costs as a percentage of net sales. Those companies that are able to keep customers happy with innovations and new ideas, often find they have a leg up on the competition”.

Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), which is best known for its BlackBerry line of smartphones, is based in Waterloo, Ont. It has been losing market share to Apple Inc. (NASDAQ:AAPL) the past couple of years. According to comScore, Inc. (NASDAQ:SCOR), Apple and Android-powered smartphones continued to dominate the US market, where both platforms increased shares at the expense of BlackBerry maker Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM). Samsung Electronics Co., Ltd. (LON:BC94) remained the top smartphone in the US, with an unchanged 25.7% of the market at the end of August, while Apple’s share increased to 17.1% as compared to 15% in May.

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