updated 09:40 am EST, Wed March 15, 2006
Apple: Frugal to a fault?
Despite Apple's recent success, the company may be skimping on its research and development budget, which could impact its ability to bring new, innovative products to market, according to a new column at TheStreet.com. Troy Wolverton notes that Apple's R&D spending has fallen, as a portion of sales, every year since fiscal 2001, when the company devoted 8 percent. "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. 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."