Will Apple's Focus on Profits Let Its Rivals Jump Ahead? - Technology Review:
"Apple spends far less than its rivals on research and development? Despite all its bluster about "innovation," Apple devotes a paltry 2 percent of revenue to R&D, versus 14 percent at Google and Microsoft and 6 percent at Samsung. In terms of absolute dollars, Google spends twice as much as Apple on R&D, though it has one-third the revenues. Microsoft spends three times as much as Apple, but has half as much revenues. Samsung's revenues are about the same as Apple, but the Korean company spends 3.5 times as much on R&D.
No wonder Apple makes such an amazing profit. The overall net margin may be 28 percent, but on phones, Apple makes 38 to 42 percent,"
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