Is It True that Apple Is Spending ‘Dramatically Below Peers’ on Innovation? Discuss!

Is It True that Apple Is Spending ‘Dramatically Below Peers’ on Innovation
Apple has long been an icon of American innovation. The iPhone, Mac, iPad, AirPods, and other innovations have contributed to the company’s nearly $2 trillion market valuation, making it America’s most-valued company by a wide margin.

But Bernstein analyst Toni Sacconaghi asserts that Apple (ticker: AAPL) is underspending on innovation relative to its peers. And it likewise is spending far less than rivals on the acquisition of new technology developed by others.

Sacconaghi points out in a research note on Tuesday that Apple was spending just 2.2% of revenue on research and development, “dramatically below peers,” when CEO Tim Cook … Read More »